On Friday, investors, media members, and Motorsport Games employees were given a report on the company’s financial results for the fourth quarter and full year of 2022. The news that the IndyCar game that was supposed to be released in 2023 would not be released this year was delivered during the call. Additionally, the company stated that they were still evaluating what would happen with NASCAR 23, which was scheduled for release in 2023.
In addition to the news regarding the games, the company also reported a net loss of 36.8 million dollars for 2022. This follows the announcement by Motorsport Games in 2021 that it had incurred a net loss of $33.7 million.
After another year of losses in the multi-million dollar range, many people worry about the company’s state. Immediately following the earnings call, Dmitry Kozko, the CEO of Motorsport Games, emailed the entire staff to bring them up to speed.
At the outset of the email, Kozko expressed gratitude to employees of Motorsport Games for their “unwavering dedication and hard work.” After that, he discussed some of the problems that have arisen at the company over the past year.
“The previous 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. “These trials have tested our resilience throughout the past year.” “Thanks to your hard work, we have made significant headway in our product release schedule and maintain our concentration on creating immersive racing game experiences for both INDYCAR and NASCAR.”
He cited the company’s recent raising of $11.3 million in the capital, the exchanging of $4 million in debt with Motorsport Network, and the completion of its 1-for-10 reverse stock split as reasons to be optimistic about the future the company. Kozko brought up the topic of “uncertainties” once more.
“I want to remind you that the strength of Motorsport Games lies in our people,” he says. “I want to remind you that our people are our greatest asset.” “Together, we will continue to drive the only official racing games forward, bringing our fans the racing games that are the most immersive and engaging,”
He concluded the email to the employees of Motorsport Games by announcing the hiring a new chief financial officer, Jason Potter. Since May 2022, Potter has been Executive Vice President and Chief Accounting Officer at Motorsport Network.
NASCAR and Motorsport Games have yet to respond to the requests for comments made to them. However, people familiar with the development of NASCAR 23 have stated that the race car could only partially emerge from the stage of design.
IndyCar did reply as follows:
The development team at Motorsport Games has informed us that they are making steady progress in their efforts. Nevertheless, they should be in a position where they can confidently publish an INDYCAR game this year. We consider all of this information while maintaining our dedication to providing members of the INDYCAR community with video games of the highest possible quality.
In October 2021, Motorsport Games released NASCAR 21 Ignition, their final game of this magnitude. In October of 2022, the company released a racing video game for the Nintendo Switch called NASCAR Rivals. This game was an improved version of NASCAR Heat+.
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