Due to the complexity and demands of mimicking real-life driving, racing sims require faster computers to run effectively, as well as a steering wheel and pedals for the throttle and brakes for the immersion. While using a gamepad or even a 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. With the development of online racing, the ability to drive against human opponents and computer AI offline is the closest many would come to driving cars on a real track. Even those who race in real-world competition use simulations for practice or for 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.
Prior to the division between arcade-style racing and sim racing, 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 II was released in 1983 and featured several improvements. TX-1, developed by Tatsumi in 1983, placed a greater emphasis on realism, including force feedback technology. 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, such as Hang-On (1985) and Out Run (1986). 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 by Geoff Crammond, followed in 1986.
Sim racing is generally acknowledged to have really taken off in 1989 with the introduction of Papyrus Design Group's Indianapolis 500: The Simulation, designed by David Kaemmer and Omar Khudari. The game is often regarded as the personal computer's first true auto racing simulation. In 1991, Namco released the arcade game Mitsubishi Driving Simulator, co-developed with Mitsubishi. The next major milestone was the 1992 release of Formula One Grand Prix by MicroProse, also 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. In 1993, Network Q RAC Rally was released as an authentic sim racer based specifically on rallying. Rally sim racers became highly popular after the 1998 release of Colin McRae Rally. 1995 saw the release of IndyCar Racing II, updating the first version. A year later, MicroProse released Grand Prix 2, the successor to F1GP. In 1996, NASCAR Racing 2 was released, further improving the original. In 1997, Gran Turismo was released for the PlayStation.
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 the new technology in 1997. After years of development, MicroProse released Grand Prix 3. Another milestone came in 1998 with the release of Papyrus’ Grand Prix Legends. In 1997, TORCS was released, uniquely as open source. Sega AM2's 1999 arcade game F355 Challenge, later ported to the Dreamcast in 2000, 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 Eric Bailey, Scawen Roberts, and Victor van Vlaardingen 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. David Kaemmer, co-founder of the now-defunct 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. Others were able to relaunch their careers after previously pursuing motorsport at a young age, including James Baldwin, Cem Bölükbaşı, Igor Fraga, and Chris Lulham. It has also grown to become a suitable training tool for drivers, such as with NASCAR driver Parker Kligerman, Super GT driver Rikuto Kobayashi, Porsche factory driver Laurin Heinrich, and Formula One driver Gabriel Bortoleto. In his free time, four-time Formula One World Drivers' Champion Max Verstappen competes in sim racing. 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, with premier series receiving official developer support. The Fédération Internationale de l'Automobile, the highest governing body in auto racing, 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. Two such notable franchises, Gran Turismo and Forza, each 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 across multiple platforms. 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.
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