What Motorsport Games Told Employees After Reporting Fourth Quarter Earnings
Last Friday Motorsport Games reported its fourth quarter and full year 2022 financial results to investors, media, and employees. Within the call came news that the IndyCar game scheduled for 2023 wasn’t going to be released this year and that the company was still evaluating what will happen with NASCAR 23.
In addition to the game announcements, the company reported a net loss of $36.8 million for 2022. This comes after 2021 saw Motorsport Games report a net loss of $33.7 million.
Obviously, many are concerned about the state of the company after yet another year of multi-million dollar losses. Immediately after the earnings call, Motorsport Games CEO Dmitry Kozko sent a company-wide email to update staff.
Kozko started the email off by thanking employees for their “unwavering dedication and hard work” at Motorsport Games. He then talked about some of the issues the company has faced over the last 12 months.
“The past year has been filled with trials, including the ongoing war in Ukraine and operational hurdles, which have tested our resilience as a company,” Kozko wrote. “Your efforts have enabled us to make significant strides in our product release schedule and continue our focus on developing immersive INDYCAR and NASCAR gaming experiences.”
He then continued to tout the company’s recent $11.3 million capital raise, the $4 million debt exchange with Motorsport Network, and the completion of its 1-for-10 reverse stock split as reasons to be optimistic about the future. That said, Kozko once again brought up “uncertainties”.
“I want to remind you that the strength of Motorsport Games lies in our people,” he says. “Together, we will continue to drive the only official racing games forward, creating the most immersive and engaging racing games for our fans.”
He closed the email to Motorsport Games employees by announcing the hiring of a new CFO, Jason Potter. Potter has been the EVP and Chief Accounting Officer of Motorsport Network since May 2022.
Regarding the state of NASCAR and IndyCar gaming, Insider Gaming has reached out to NASCAR, IndyCar, and Motorsport Games. So far, requests for comment from NASCAR and Motorsport Games have gone unanswered. However, sources close to the development have said that NASCAR 23 never fully made it out of the designing stage.
IndyCar did provide a response:
Motorsport Games has reported that they continue to make strides in their development efforts but they do not believe they will be in a satisfactory position to release an INDYCAR game this year. We are evaluating this information and remain thoroughly committed to bringing the best quality video game products to the INDYCAR community.
The last full-scale release by Motorsport Games was NASCAR 21 Ignition back in October 2021. The company released NASCAR Rivals for the Nintendo Switch, which was more of an enhanced version of NASCAR Heat+, in October 2022.