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Sim racing is the collective term for racing games that attempt to accurately simulate auto racing. These games include real-world variables such as fuel usage, damage, tire wear and grip, and suspension settings. To be competitive, a driver must understand aspects of car handling like threshold braking and maintaining control as tires lose traction. This level of difficulty distinguishes sim racing from arcade racing-style driving games.

Sim racing requires faster computers to run effectively, as well as a steering wheel and pedals for immersion. While gamepads may suffice for most arcade-style driving games, they do not provide the same level of immersion and realism as a racing wheel and pedals. 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 continued development of physics engine software and improved hardware has made the experience more realistic. The sim racing gameplay style has been applied in several video games, such as iRacing, Assetto Corsa, Gran Turismo, and Forza Motorsport.

Prior to the division between arcade-style racing and sim racing, early attempts at driving simulation experiences were arcade racing video games. This dates back to Pole Position, a 1982 arcade game developed by Namco. Pole Position II was released in 1983, followed by TX-1 in 1983, which placed a greater emphasis on realism. Since the mid-1980s, arcade racing games often used hydraulic motion simulator arcade cabinets, a trend sparked by Sega's "taikan" games, beginning with Hang-On in 1985. 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 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 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. It was around this time that sim racing began distinguishing itself from arcade-style racing. Consoles saw the release of Human Entertainment's Fastest 1 in 1991. The next major milestone was the 1992 release of Formula One Grand Prix by MicroProse. 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 on rallying. 1995 saw the release of IndyCar Racing II. A year later, MicroProse released Grand Prix 2. In 1996, NASCAR Racing 2 was released, and 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 this new technology in 1997. MicroProse released Grand Prix 3, which used a more modern graphics engine. Another milestone came in 1998 with the release of Papyrus’ Grand Prix Legends. Wired magazine wrote an in-depth article about racing sims called 'Hard Drive' in their February 1997 issue. In 1997, TORCS was released. 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.

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. 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.

As international interest has grown, so has the online community and underground racing circuit. These communities act as a focal point for users to engage with one another and coordinate racing schedules. With the rising levels of competition, esports is an ever-growing topic in the community. 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 and Jann Mardenborough. Others were able to relaunch their careers, including James Baldwin. It has also grown to become a suitable training tool for drivers, such as 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 to host sanctioned events. The Fédération Internationale de l'Automobile formally incorporated an esports appendix into its International Sporting Code in 2024.

Some racing games have introduced a multiplayer driver ranking system for organizing online racing. There are usually two types of driver rankings: one for safety and one for speed. Sim racing games that include some form of ranked online racing are iRacing, Gran Turismo Sport, Project CARS 2, RaceRoom, and Assetto Corsa Competizione. A number of real-world racing series and governing bodies have established officially sanctioned sim racing series. Car manufacturers have also hosted tournaments. 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.

This article is based solely on the supplied corpus. No external sources were consulted; claims that could not be substantiated against the corpus were omitted under the drop-the-claim rule.

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