Sim racing requires faster computers to run effectively, as well as a steering wheel and pedals for immersion. While a gamepad or mouse and keyboard may suffice for most arcade-style driving games, they do not provide the same level of immersion and realism. 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 experience has become more realistic with continued development of physics engine software and improved hardware providing tactile feedback. 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.
Prior to the division between arcade-style racing and sim racing, early attempts at driving simulation were arcade racing video games, dating back to Pole Position, a 1982 arcade game developed by Namco. Pole Position II was released in 1983, and TX-1, developed by Tatsumi in 1983, placed a greater emphasis on realism. Since the mid-1980s, arcade racing games began using hydraulic motion simulator arcade cabinets, a trend sparked by Sega's "taikan" games, such as Hang-On (1985) and Out Run (1986). In 1986, Konami released WEC Le Mans, an early car driving simulator. 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, followed by REVS 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 really 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, attempting to simulate realistic physics and telemetry. Papyrus followed up Indy 500 with IndyCar Racing in 1993, and later launched the NASCAR Racing series in 1994. The first real online racing started with NASCAR Racing using the "Hawaii" dial-in servers. Network Q RAC Rally was released in 1993 as an authentic sim racer based on rallying. Grand Prix 2, released by MicroProse in 1996, became successful due to its detailed simulation and customizability. 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 sim racing games starting in 1997. Papyrus’ Grand Prix Legends, released in 1998, was hailed as outstanding in its physics and sound design. Image Space Incorporated produced their sim Sports Car GT in 1999. Sim racing games since the 2000s began exploring more complex vehicle physics implementations, focusing on tire models, suspension, aerodynamics, and internal components. Live for Speed, created in 2003, implemented a complex tire model and was one of the first games in the genre to feature online multiplayer. Richard Burns Rally by Warthog Games, released in 2004, is credited as the first true rallying simulation. rFactor, released in 2005 by Image Space Incorporated, was notable for its download-only distribution model and praised tire model. David Kaemmer, co-founder of Papyrus Design Group, released iRacing in 2008, a multiplayer-oriented simulator run on a subscription model. Kunos Simulazioni began development on Assetto Corsa in 2010, officially released in December 2014. Slightly Mad Studios launched Project CARS in 2015, a crowdfunded effort. 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, such as William Byron and Jann Mardenborough, have established careers through sim racing. Max Verstappen, a four-time Formula One World Drivers' Champion, competes in sim racing and states it helps him with his real-life racing. During the COVID-19 pandemic, several racing series used sim racing games to host sanctioned events, including Formula One's Virtual Grands Prix and the eNASCAR iRacing Pro Invitational Series.
Some racing games have introduced a multiplayer driver ranking system, typically with two types: one for safety and one for speed, using an Elo rating system. Games like iRacing, Gran Turismo Sport, and Project CARS 2 include ranked online racing. Esports is an ever-growing topic in the community, with events hosted directly by developers or other organizers, sometimes with large prize pools. The Fédération Internationale de l'Automobile formally incorporated an esports appendix into its International Sporting Code in 2024. A number of real-world racing series and governing bodies have established officially sanctioned sim racing series, such as Formula One's F1 Sim Racing and eNASCAR on iRacing.
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