Studio 397’s simulation has sold over 55,000 copies within the first 10 days, according to Motorsport Games CEO Stephen Hood.
Images: Motorsport Games/Studio 397
Like when Rocky is on the ropes but finds the energy to come back to beat Ivan Drago in Rocky IV (spoiler, sorry, it has been nearly 40 years), Motorsport Games is reporting sales “above forecasts” for Le Mans Ultimate, marking the beginning of what it hops is a fightback.
The beleaguered racing game developer released the PC early access title in February, with the Studio 397-developed simulation building upon its existing platform, rFactor 2, to create an official 24 Hours of Le Mans and FIA World Endurance Championship simulation.
Development continues apace, with several hotfixes and two major patches released so far. Touted features such as virtual reality, championship mode and asynchronous co-op remain absent but are expected later alongside 2024-season content in some form.
With the sale of the NASCAR licence to iRacing last year, the cessation of the BTCC agreement and the closure of the IndyCar game project, Studio 397 is Motorsport Games’ last remaining development team. It seems like the early signs are positive for the outfit.
“Within the first 36 hours of release into early access, Le Mans Ultimate sold as many units as we had projected from the opening 10 days,” said Motorsport Games Chief Executive Officer, Stephen Hood during its Q4 and full-year 2023 earnings call, 1st April 2024.
“It's gone on to continually sell above expectations and we have revised internal forecasted sales numbers to account for this higher-than-expected update.
“We had anticipated, with a strong tailwind, selling 18,000 copies in the opening 10 days. In reality, the reception was so strong that we sold more than 55,000 copies.
“This title is our springboard for a vision we have been working towards for the last several months, which we believe signifies a turning point in the recent history of our company.”
The financial report and earnings call are related to figures only for Q3 2023 and the full 2023 financial year, ending 31st December.
Therefore, Motorsport Games was spending to develop Le Mans Ultimate, but not receiving revenue from the title, which will not be reported on until the Q1 2024 report expected later this year.
As a result, the numbers are dim, with the same stark liquidity warning that has been published innumerably over the past two years:
“...The Company does not believe it has sufficient liquidity to fund its operations for the remainder of 2024 and that additional funding will be required in order to continue operations.”
It is to be expected at this point, and while the challenges remain, this itself is not breaking news or alarm-bell sounding. Especially considering this is, to reiterate, referencing a time before the Le Mans Ultimate launch.
The interim Chief Financial Officer at Motorsport Games was able to provide some insight into more recent ongoings.
“In the grand scheme of things, [Le Mans Ultimate early access] has not gotten us out of the need to get more funding, it helps a bit,” said Stanley Beckley on today’s (1st April) earnings call.
“We have some relief there, but that is very short-term in nature, as I think we're still under a liquidity crunch, we still manage expenses and our cash as much as we can.
“We had $1.7m cash in hand at the end of December, and as of Friday (29th March 2024) we had about $1.3m.
“But it does look promising, like Stephen alluded to, as relates to the initial inception we've received from the release of the game.”
During 2023 its average monthly cash burn was $1.1m, but as quoted above, Le Mans Ultimate has stemmed that flow somewhat to an average of ~$133,333 per month in 2024.
There is also the potential option for European and Asian Le Mans Series representation, provided the team “walk before we run.”
“We are now pushing ahead with continual development of the title throughout the remainder of this year, planning to bring exciting new content and features to the Le Mans Ultimate experience, as well as complimentary services,” said Hood on the same earnings call.
“The focus for the year ahead is to continue building the positive momentum around our recent game release with new updates, additional services through RaceControl [the ranked online multiplayer platform within Le Mans Ultimate and rFactor 2] and downloadable content.”
No estimate was provided as to when the next set of bug fixes or new features are scheduled for release. However, a hint was provided as to when the next big marketing push for the title will be...
According to Hood, this will be used to formally announce the return of its sim racing competition for later in the year, the Le Mans Virtual Series:
“We believe [the 24 Hours of Le Mans] will be another opportunity for increased visibility and sales for Le Mans ultimate, as well as the perfect launch pad for our anticipated reveal around the future of Le Mans Virtual Series, one of the world's most watched racing esports events of the last few years.
“The ACO and Le Mans have been supporting us with additional advertising at the track [during WEC rounds] and we have a great presence at [the] Le Mans [event]. So, there are some real benefits to this joint venture, which I think will certainly add fuel to the fire in terms of marketing and visibility, which we intend to capitalise upon.”
The 2024 24 Hours of Le Mans runs between 12th and 16th June – are you planning on making the trip? Let us know in the comments below, or via X: @OverTake_gg.
Images: Motorsport Games/Studio 397
Like when Rocky is on the ropes but finds the energy to come back to beat Ivan Drago in Rocky IV (spoiler, sorry, it has been nearly 40 years), Motorsport Games is reporting sales “above forecasts” for Le Mans Ultimate, marking the beginning of what it hops is a fightback.
The beleaguered racing game developer released the PC early access title in February, with the Studio 397-developed simulation building upon its existing platform, rFactor 2, to create an official 24 Hours of Le Mans and FIA World Endurance Championship simulation.
Development continues apace, with several hotfixes and two major patches released so far. Touted features such as virtual reality, championship mode and asynchronous co-op remain absent but are expected later alongside 2024-season content in some form.
With the sale of the NASCAR licence to iRacing last year, the cessation of the BTCC agreement and the closure of the IndyCar game project, Studio 397 is Motorsport Games’ last remaining development team. It seems like the early signs are positive for the outfit.
“Within the first 36 hours of release into early access, Le Mans Ultimate sold as many units as we had projected from the opening 10 days,” said Motorsport Games Chief Executive Officer, Stephen Hood during its Q4 and full-year 2023 earnings call, 1st April 2024.
“It's gone on to continually sell above expectations and we have revised internal forecasted sales numbers to account for this higher-than-expected update.
“We had anticipated, with a strong tailwind, selling 18,000 copies in the opening 10 days. In reality, the reception was so strong that we sold more than 55,000 copies.
“This title is our springboard for a vision we have been working towards for the last several months, which we believe signifies a turning point in the recent history of our company.”
Pre-Le Mans Ultimate Figures
The financial report and earnings call are related to figures only for Q3 2023 and the full 2023 financial year, ending 31st December.
Therefore, Motorsport Games was spending to develop Le Mans Ultimate, but not receiving revenue from the title, which will not be reported on until the Q1 2024 report expected later this year.
As a result, the numbers are dim, with the same stark liquidity warning that has been published innumerably over the past two years:
“...The Company does not believe it has sufficient liquidity to fund its operations for the remainder of 2024 and that additional funding will be required in order to continue operations.”
It is to be expected at this point, and while the challenges remain, this itself is not breaking news or alarm-bell sounding. Especially considering this is, to reiterate, referencing a time before the Le Mans Ultimate launch.
The interim Chief Financial Officer at Motorsport Games was able to provide some insight into more recent ongoings.
“In the grand scheme of things, [Le Mans Ultimate early access] has not gotten us out of the need to get more funding, it helps a bit,” said Stanley Beckley on today’s (1st April) earnings call.
“We have some relief there, but that is very short-term in nature, as I think we're still under a liquidity crunch, we still manage expenses and our cash as much as we can.
“We had $1.7m cash in hand at the end of December, and as of Friday (29th March 2024) we had about $1.3m.
“But it does look promising, like Stephen alluded to, as relates to the initial inception we've received from the release of the game.”
During 2023 its average monthly cash burn was $1.1m, but as quoted above, Le Mans Ultimate has stemmed that flow somewhat to an average of ~$133,333 per month in 2024.
The Year Ahead
As OverTake has previously reported, Le Mans Ultimate is set to receive at the very least some, if not all, of the 2024-season content, aping the real world.There is also the potential option for European and Asian Le Mans Series representation, provided the team “walk before we run.”
“We are now pushing ahead with continual development of the title throughout the remainder of this year, planning to bring exciting new content and features to the Le Mans Ultimate experience, as well as complimentary services,” said Hood on the same earnings call.
“The focus for the year ahead is to continue building the positive momentum around our recent game release with new updates, additional services through RaceControl [the ranked online multiplayer platform within Le Mans Ultimate and rFactor 2] and downloadable content.”
No estimate was provided as to when the next set of bug fixes or new features are scheduled for release. However, a hint was provided as to when the next big marketing push for the title will be...
24 Hours of Le Mans Promotion In June
Le Mans Ultimate was first shown in a playable form at the sold-out 2023 24 Hours of Le Mans race in France, so it is perhaps not surprising that it plans to be present once again later this year.According to Hood, this will be used to formally announce the return of its sim racing competition for later in the year, the Le Mans Virtual Series:
“We believe [the 24 Hours of Le Mans] will be another opportunity for increased visibility and sales for Le Mans ultimate, as well as the perfect launch pad for our anticipated reveal around the future of Le Mans Virtual Series, one of the world's most watched racing esports events of the last few years.
“The ACO and Le Mans have been supporting us with additional advertising at the track [during WEC rounds] and we have a great presence at [the] Le Mans [event]. So, there are some real benefits to this joint venture, which I think will certainly add fuel to the fire in terms of marketing and visibility, which we intend to capitalise upon.”
The 2024 24 Hours of Le Mans runs between 12th and 16th June – are you planning on making the trip? Let us know in the comments below, or via X: @OverTake_gg.
