VR manufacturer Pimax saves Le Mans Ultimate

Following the news that Le Mans Ultimate‘s parent company, Motorsport Games, has received a $2.5 million investment, it has been confirmed that the cash injection is courtesy of premium virtual reality equipment manufacturer Pimax.

The Chinese outfit was founded in 2015 and currently produces a range of VR headsets for PC use, including the Crystal Light and the Crystal Super.

It seeks to diversify its portfolio into software, and by purchasing  1,894,892 of Class A Common Stock (plus pre-funded warrant to purchase up to 377,836 of further shares) , it will receive a vetted place on the Motorsport Games board as a significant shareholder.

It is not a controlling stake, which remains with Driven Lifestyle continuing as the majority owner.

The deal is said to have taken upwards of eight months to complete behind the scenes, with the Nasdaq-listed outfit publicly stating intent for new owners or investors since October last year.

“We’ve been speaking to four or five serious parties since we started looking for investment or acquisition,” said Motorsport Games CEO Stephen Hood, to Traxion.

“There were a lot of people who came to the table that weren’t for us because the terms were onerous, or they were looking for a quick buck, or they didn’t have a vision for the company.

“But Pimax is very distinct from us, as a hardware company, so we can be left to the software, and it can focus on the hardware, and I think we give them a competitive advantage.

“We got talking around potential synergies, and I love its headsets, because they are high-end, and high-quality, and we’re trying to do the same thing by repositioning as a boutique software developer in the racing segment.”

“Sim racing players make up a vital part of the Pimaxcommunity,” said Robin Weng, Founder and Chairman of Pimax.

“Through our partnership with Motorsport Games, we aim to better understand and address the specificneeds of this user group, enhancing their experience with tailored VR solutions.

“Pimax will continue to explore similar vertical partnerships to strengthen ouruser-focused strategy, build deeper engagement, and grow long-term loyalty within our passionate communities.”

Motorsport Games “in a good position”

Le Mans Ultimate was released into an early access programme in February of 2024, and has since then received regular updates, features and optional DLC content. It recently hit new player number highs.

In May, it is set to receive the last of the FIA WEC 2024-season content, plus notable features such as online driver swaps and custom liveries, potentially paving the way for enhanced special events and Le Mans Virtual esports competitions.

A Version 1.0 release is expected within 2025.

Motorsport Games, meanwhile, has a tumultuous financial history and reported an adjusted EBITDA loss for 2024’s fourth quarter of $2.5 million – although its CEO is bullish about stemming the losses of late.

“The cash operationally puts us in a really good position for easily the next year,” continued Hood.

“The company’s approaching break even, so this supercharges us.

“It doesn’t mean we’re going on a spending spree, but where a lot of the community have been asking, ‘This game is getting really good, but they’re not even out of early access, will they ever make it?’ Well, guess what? We’re here for the long haul.

“I came back to Motorsport Games two years ago, and you will have seen the difficult decisions that we’ve taken to try and turn the company around. It’s gambling at times, but really, the flagship was Le Mans Ultimate, and that opened a lot of doors.”

The Pimax deal does not mean that the simulation title will be exclusive to that brand of headsets, as has been seen with some prior software deals on rivalling Meta devices.

Hood is coy on what future features and developments are now in the pipeline, but did hint at some form of possible VR integration for the returning Le Mans Virtual Series esports series.

“I almost can’t celebrate this deal because the mission continues,” concluded Hood.