Image Space Incorporated first developed the software engine, known as Motor1, for the 1999 title Sports Car GT. This engine was subsequently used for F1 2002 and F1 Challenge '99-'02. The engine, referred to as isiMotor, was later licensed to SimBin for titles like GTR and GTR 2.
Image Space Incorporated then created rFactor, released in 2005, using the isiMotor2 engine, and provided tools for modding. isiMotor2 was further licensed to companies such as Slightly Mad Studios, Reiza Studios, and 2Pez Games. This engine also formed the basis for rFactor Pro, used by real-life racing teams and manufacturers. Image Space Incorporated then began development of rFactor 2, using the isiMotor2.5 engine, incorporating code from rFpro.
The development of rFactor 2 became publicly known in March 2009 when Gjon Camaj of Image Space Incorporated posted in-game screenshots on Twitter. By October 2010, plans included licensed content, a reworked UI, dynamic weather, and a new force feedback system. The first open beta, Test Build 49, was released on January 10, 2012, and was considered released on March 28, 2013 (Build 198). Tire degradation was added in February 2013 with build 146.
In September 2016, Image Space Incorporated partnered with Luminis, leading to the creation of Studio 397, based in Apeldoorn, to continue development. Studio 397 managing director Marcel Offermans stated that new features would be implemented, including a web-based UI, a DirectX 11 compatible graphics engine, and VR support. A new “paid-content system” was also planned. In December 2016, Studio 397 released information about new licensed content, including the U.S. F2000 National Championship, Radical Sportscars, and NOLA Motorsports Park. Online racing was made free to all users in December 2016, removing the previous subscription fee.
rFactor 2 and its predecessor have received praise for their advanced and accurate simulation of vehicle dynamics, and are preferred by professional racing teams, engineers, and simulation centers. The simulator includes a new constraint system simulating chassis flex, and accurate suspension geometry. The interaction between Image Space Incorporated and professional racing teams led to the development of the ISI TGM Tyre Tool. rFactor 2 features a thermomechanical, physically-based tire model, simulating the entire carcass, thread, and contact patch, with heat transfer, wear, and deformation.
The “Real Road” feature dynamically lays rubber on the track surface during a race session, affecting grip and carrying over to subsequent sessions. The AI of rFactor 2 has spatial awareness, adjustable strength and aggression, and the ability to learn racing lines. rFactor 2 is designed to be modified, with a dedicated mod packaging system and Steam Workshop integration. The Competition System, released in beta in December 2020, aims to provide daily races, ranked racing, and support league racing. rFactor 2 also features a full day-to-night cycle, fuel usage, and visual and mechanical damage.
rFactor 2 has been used for the Formula SimRacing (FSR) World Championship since 2014. From April to June 2020, it hosted the Formula E Race at Home Challenge, and the 24 Hours of Le Mans Virtual in June 2020, though the latter was red-flagged twice due to server issues, drawing criticism from Max Verstappen. In 2023, the Le Mans Virtual race was again red-flagged due to a security breach, and Verstappen experienced game crashes, leading him to vow to never race in the event again. In February 2022, the IndyCar IR-18 was released with official licenses.
The physics of rFactor 2 was licensed to Amazon Game Studios’ The Grand Tour Game, released in January 2019. Following Motorsport Games’ acquisition of Studio 397 in 2021, the rF2 physics engine was used in Motorsport Games titles, including NASCAR 21: Ignition.