Motorsport Gaming Us LLC (MSGM)

History and Background

Motorsport Gaming US LLC, also known as Motorsport Games, was founded in 2018. It quickly became a publicly traded company via a reverse merger with 704Games, the NASCAR Heat developer, aiming to capitalize on the growing esports and gaming markets focused on motorsports. Its early strategy centered on acquiring licenses for major racing series.

Core Business Areas

• Racing Game Development and Publishing: Develops and publishes racing games for various platforms (PC, consoles, mobile), focusing on officially licensed motorsports content.
• Esports Events and Management: Organizes and manages esports competitions and events related to its racing game portfolio. It provides the esports events for the game published for game series NASCAR and BTCC.
• Licensing and Content Management: Acquires and manages licenses for various motorsports properties (e.g., NASCAR, BTCC) to create and publish related games and content.

Leadership and Structure

The leadership structure includes a CEO (currently Stephen Hood), CFO, and various departmental heads overseeing development, publishing, esports, and licensing. The organizational structure is typical of a gaming company, with teams dedicated to game development, esports operations, marketing, and sales.

Key Offerings

• NASCAR Series Games: Flagship product, including NASCAR Heat and NASCAR 21: Ignition. Market share varies, but it competes with other racing games for overall racing game market share. Competitors include iRacing, Assetto Corsa, and Gran Turismo. NASCAR Heat was popular but Ignition was a disappointment.
• rFactor 2: A realistic racing simulator platform. Market share is focused within the sim racing community. Competitors include iRacing, Assetto Corsa Competizione, and Automobilista 2.
• BTCC Game: A game based on British Touring Car Championship. It is expected to be launched in 2024 or 2025. Market share is focused within the BTCC and racing sim community. Competitors in the racing area in the UK include Codemasters' F1.

Industry Overview

The racing game market is competitive and growing, driven by advancements in graphics, realism, and esports. The overall industry is influenced by changing consumer preferences, technology (VR, cloud gaming), and licensing agreements.

Positioning

Motorsport Games aims to be a leader in officially licensed motorsports gaming. Its competitive advantages lie in its exclusive licenses for series like NASCAR (historically, but future uncertain) and its rFactor 2 simulation platform.

Total Addressable Market (TAM)

The racing game market TAM is estimated to be in the billions of USD. Motorsport Games aims to capture a significant portion through licensing and development of realistic simulations and engaging esports events. The TAM depends on the types of the game and the audience (arcades versus sim). The global video game market in general is over 200 billion.

Key Competitors

• EA (EA)
• Take-Two Interactive (TTWO)
• Codemasters (Owned by EA)
• Kunos Simulazioni (Assetto Corsa)
• iRacing.com Motorsport Simulations

Competitive Landscape

Motorsport Games faces stiff competition from larger, more established gaming companies with greater resources and broader portfolios. Its success hinges on maintaining key licenses, improving game quality, and navigating financial challenges effectively. Their competitive advantage should come from the NASCAR and BTCC licenses.

Historical Growth: Historical growth has been limited by financial challenges and mixed critical reception of some game titles.

Future Projections: Future growth projections are uncertain given the current financial instability. Analyst estimates are limited and likely reflect caution.

Recent Initiatives: Recent initiatives may include cost-cutting measures, attempts to secure new funding, and efforts to improve game development quality and maintain the NASCAR license.

Motorsport Games faces significant challenges due to its financial instability and mixed reception of recent games. The company's future relies heavily on maintaining key licenses, improving the quality of its games, securing new funding, and capitalizing on the growth of esports and sim racing. The loss of the NASCAR license could have severe ramifications. The company is currently very weak and needs significant strategic shift to survive.

Data Sources:

• Company Filings
• Industry Reports
• Analyst Estimates
• News Articles

Disclaimers:

This analysis is based on publicly available information and analyst estimates, which are subject to change. It is not financial advice. Motorsport Games financial situation is highly dynamic, and current data may be outdated.