Sim racing requires faster computers to run effectively, as well as a steering wheel and pedals for the throttle and brakes for immersion. While a gamepad or mouse and keyboard may suffice for most arcade-style driving games, it would not provide the same level of immersion and realism. In recent years, many sim racing experiences have been developed for consoles, such as the PlayStation and Xbox. Even those who race in real-world competition use simulations for practice or entertainment. The sim racing gameplay style has been applied in several video games, such as iRacing, Assetto Corsa and Assetto Corsa Competizione, Gran Turismo, and Forza Motorsport.
The earliest attempts at providing driving simulation experiences were arcade racing video games, dating back to Pole Position, a 1982 arcade game developed by Namco. Pole Position was publicized for its "unbelievable driving realism" in providing a Formula 1 experience behind a racing wheel. Pole Position II was released in 1983 and featured improvements like giving the player the choice of different race courses. TX-1, developed by Tatsumi in 1983, placed a greater emphasis on realism, forcing players to brake or downshift during corners. Since the mid-1980s, it became a trend for arcade racing games to use hydraulic motion simulator arcade cabinets, sparked by Sega's "taikan" games. Hang-On (1985) by Sega was considered the first full-body-experience video game and motorbike simulator for its realism. In 1986, Konami released WEC Le Mans, an early car driving simulator based on the 24 Hours of Le Mans. The first racing game with simulation pretensions on a home system is believed to have been Chequered Flag, released by Psion on the 8-bit ZX Spectrum in 1983. REVS, a Formula 3 sim, followed in 1986. 3D polygon graphics appeared in arcade racing simulators with Namco's Winning Run (1988) and Atari's Hard Drivin' (1989).
Sim racing is generally acknowledged to have taken off in 1989 with the introduction of Papyrus Design Group's Indianapolis 500: The Simulation. This game is often regarded as the personal computer's first true auto racing simulation. Indianapolis 500 attempted to simulate realistic physics and telemetry. In 1991, Namco released the arcade game Mitsubishi Driving Simulator, a serious educational street driving simulator. The next major milestone was the 1992 release of Formula One Grand Prix by MicroProse, developed by Geoff Crammond. Papyrus followed up Indy 500 with IndyCar Racing in 1993. The first variant of Papyrus' NASCAR Racing series was launched in 1994. NASCAR Racing sold over one million units, and the first real online racing started with NASCAR Racing using the "Hawaii" dial-in servers. In 1993, Network Q RAC Rally was released as an authentic sim racer based on rallying. Rally sim racers became popular after the 1998 release of Colin McRae Rally. 1995 saw the release of IndyCar Racing II. A year later, MicroProse released Grand Prix 2, the successor to F1GP. In 1996, NASCAR Racing 2 was released, and the number of sim racers exploded. In 1997, Gran Turismo was released for the PlayStation, introducing the racing simulation genre to home consoles.
Graphics accelerator cards brought a new level of realism to the graphics and physics of sim racing games. F1 Racing Simulation by Ubisoft was among the first to utilize this new technology in 1997. MicroProse released Grand Prix 3, which used a more modern graphics engine. Another milestone in sim racing came in 1998 with the release of Papyrus’ Grand Prix Legends, based on the 1967 Formula One season. Sega AM2's 1999 arcade game F355 Challenge was considered the most accurate simulation of the Ferrari F355 possible up until that time. American independent developer Image Space Incorporated produced their own sim Sports Car GT in 1999, and later the officially-licensed F1 series starting in 2000.
Sim racing games since the 2000s began exploring more complex vehicle physics implementations. One of the earliest examples was Live for Speed, created by ex-Lionhead Studios developers in 2003. Credited as the first true rallying simulation, Richard Burns Rally by Warthog Games was released in 2004. rFactor was notable for its initial download-only distribution model, and was originally released in 2005 by Image Space Incorporated. rFactor's 2012 sequel, rFactor 2, became the official simulator of the Formula E series in 2022. David Kaemmer, co-founder of Papyrus Design Group, released iRacing in 2008. Kunos Simulazioni began development on Assetto Corsa in 2010. Slightly Mad Studios launched Project CARS in 2015. Sim racing experienced an exponential rise in exposure in 2020, following the suspension of global racing series due to the COVID-19 pandemic. Studio 397 and Motorsport Games released Le Mans Ultimate on 22 July 2025.
The growing fidelity of sim racing has led to its adoption in professional motorsport as a talent pipeline for drivers. Some players have established careers through sim racing such as William Byron, Rajah Caruth, Tim Heinemann, Jann Mardenborough, and Lucas Ordóñez. It has also grown to become a suitable training tool for drivers, such as with NASCAR driver Parker Kligerman and Formula One driver Gabriel Bortoleto. Four-time Formula One World Drivers' Champion Max Verstappen competes in sim racing in his free time. During the COVID-19 pandemic, several racing series used a variety of sim racing games as a platform to host sanctioned events.
Some games also feature esports, including events hosted either directly by the developer or by other organizers. The Fédération Internationale de l'Automobile formally incorporated an esports appendix into its International Sporting Code in 2024. Some console racing games have featured major esports events, though they are less common than their computer-based counterparts. Gran Turismo and Forza have had organized events on their respective platforms. A number of real-world racing series and governing bodies have established officially sanctioned sim racing series. Assetto Corsa Competizione previously featured official tournaments hosted by governing body SRO Motorsports Group. Formula One has annually hosted F1 Sim Racing since 2017. iRacing currently hosts numerous esports championships on its platform, including official series presented by major car manufacturers and governing bodies.
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