US-based video game developer, publisher, and esports organiser Motorsport Games has reported a net loss of US$5.1m for Q1 2023, a 66.3 per cent reduction compared to last year.
Confirmed:
- Revenue falls from US$3.3m to US$1.73m compared to same period in 2022
- Despite this, net loss falls from US$15.13m to US$5.1m for the three-month period
- Stephen Hood recently returned as chief executive officer of Motorsport Games
Context: The company benefitted from no impairment losses in 2023, compared to these reaching US$9.3 million in 2022. The remaining US$1.4 million reduction in net loss was primarily due to reduced external marketing spend and lower payroll costs in 2023. Revenue suffered as the company experienced less favourable pricing and lower volume of digital sales in its existing product portfolio.
Comment: Hood said: “I am incredibly passionate about the world of motorsport, and I see a tremendous opportunity for growth and innovation in this exciting industry. I am pleased to be able to rejoin Motorsport Games as chief executive and lead this team in driving the company forward.
“With our expertise in racing game development, esports, and broadcasting, I believe we are increasingly well-positioned to capitalize on the growing demand for immersive motorsport experiences and create new opportunities for fans and participants around the world.”
Consequence: Hood was appointed as Motorsport Games’ new chief executive less than a month ago, stabilising a company experiencing a period of turbulence. Four of the company’s board of directors stepped down at the end of last year, so the improvement in the video game developer’s net losses at the start of this year will come as a positive sign.