Kozko Out, Hood In as Motorsport Games CEO

Hood Kozko Motorsport Games.jpg
Following the reveal of their 2022 Q4 results last month, rFactor 2 developers Motorsport Games have moved on from their previous CEO.

Image credit: Motorsport Games

After a period of some turmoil, Motorsport Games has terminated the employment of their previous CEO Dmitry Kozko, effective as of 19 April 2023. In his place, Stephen Hood will take up the mantel of Motorsport Games CEO, returning to the company after just over a year. Kozko will remain involved with the company as a director.

In a statement provided to the United States Securities and Exchange Commission, Motorsport Games outlined their reasoning for taking this step.

“The board of directors, while noting Mr. Kozko’s significant efforts and achievements, especially in fund raising, for the Company, concluded that Mr. Hood’s extensive prior knowledge of the Company and its products and extensive experience in game development would be a better fit for the Company in its games’ development stage.”

Hood served as the president of Motorsport Games from April 2019 to January 2022. Beforehand, he worked as a director of 704 Games, the developers behind the NASCAR Heat games, and as a Creative Director and Chief Game Designer for Codemasters.

A Rocky Road​

Late last year, Motorsport Games underwent significant changes to the composition of its upper management. Several members of the board of directors resigned their posts within the company shortly before it was due to reveal its Q3 results.

More recently, MSG’s Q4 results revealed a 54% decrease in revenue compared to the previous year’s fourth quarter, a fall from $8.2 million to $3.8 million. However, a reduction to the financial outlay with regards to sales and marketing, as well as development, meant that the net loss fell from $7 million in Q4 2021 to $4.8 million in Q4 2022.

Despite this reduction to the net loss figures, the company stated that “we do not believe we have sufficient cash on hand to fund our operations for the remainder of 2023, and that additional funding will be required in order to continue operations.”

Editor's Take (Jacob Hancox)​

In my opinion, a shakeup at the top of Motorsport Games makes perfect sense. Given Mr. Kozko’s cited strengths being “especially in fund raising”, combined with the poor state of MSG’s balance sheets, it is evident that the current approach was not conducive to the company’s long-term success.

As such, I also believe it is a sensible step to maintain Mr. Kozko as a director of the company, so that he may “assist the board of directors and the management of the Company with fundraising”.

On a similar note, the decision to bring back Mr. Hood makes a good deal of sense. His background and experience with game development may well lead to better quality products. Given the public reception to Motorsport Games’ NASCAR 21: Ignition, which sits at a shocking 26% approval rating on Steam, it is essential that the company focuses on quality.

Motorsport Games’ own statements regarding its future aren’t promising, and nor is the fact that the development budget was reduced in an effort to balance the books. However, we can at least hope that this is a step in the right direction for the company and therefore for sim racing as a whole.


What are your thoughts on Motorsport Games’ future? Tell us on Twitter at @OverTake_gg or in the comments down below!
About author
Jacob (OverTake)
My name is Jacob and I have been writing for OverTake since November of 2020. I come from the UK, but I'm now living in Berlin. I love to watch, write about and sometimes shout about all forms of racing.

Comments

As I posted on another forum:

Key sentence in the presse release: "outgoing lead Dmitry Kozko continues as a director to help find fresh investment."

Yep, the scam is still going on, ladies and gents. They have to find new money because the old money was spent on many things (fancy cars, parties, vacations) but game development...
 
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Whether they change ceo or not, if multiplayer remains crap then there is no point. Just to give an example: last night, 20 mins race (I repeat, 20 minutes, not a 24 hour) on LFM ... after about half a race all of a sudden at least 7-8 disconnects ... but just all of a sudden with no weird lagginess or who knows what. How nice to make a simulator unplayable where once instead you could do 24 hours without too much hassle, and I did the 24 hours of Le Mans 2 times in the VEC between 2015 and 2016 ... those were good times, when there were still ISI's and not these... things ... who think more about official licenses than anything else, which certainly will be important, but if you don't fix the foundation the building sooner or later collapses, and here it's a constant crash ...
 
Regarding the funding: I always wonder who these investors are and where that money comes from. Can't imagine people with a sim racing background investing in this, and people without that background to blow money on it? Seems almost like a money laundering operation..
 
Regarding the funding: I always wonder who these investors are and where that money comes from. Can't imagine people with a sim racing background investing in this, and people without that background to blow money on it? Seems almost like a money laundering operation..
most investors don't have the background of the industry they have shares
 
Regarding the funding: I always wonder who these investors are and where that money comes from. Can't imagine people with a sim racing background investing in this, and people without that background to blow money on it? Seems almost like a money laundering operation..
Now that money laundering through modern art is common knowledge, they're moving on to simracing to ensure they don't attract any attention :laugh:
 
They're a complete mess, they need sorting out, I hope Hood is the man to do it.
 
really hope S397 is able to escape from this mess and find funding elsewhere. I know rF2 is, uh, controversial, but that doesn't mean the devs themselves deserve to get caught up in this mess. (more selfishly, it's my favorite sim and I don't want to see it go away like this!)
 
I kinda wish MSG would just go tits up and release all the motorsport series from their agreements. Surely when they gave approval there were contigencies by WEC, Indycar BTCC, etc that should a reasonably acceptable sim not be developed by a certain date that the agreement would be null and void.
 
That's life

That's what all the people say
You're riding high in April, shot down in May :(
But I know I'm gonna change that tune
When I'm back on top, back on top in June :laugh:

I said that's life

And as funny as it may seem
Some people get their kicks :x3:
Stomping on a dream :x3:
But I don't let it, let it get me down :p
Cause this fine old world, it keeps spinnin' around



THAT'S LIFE.jpg
 
It's a mortally wounded company. No profit, money spent, the image in ruins... They'll try to run it for a couple more years, struggling, before every asset goes at an auction.
I wish every success to Stephen Hood, but it's a very hard task. I hope the old Rfactor gang gets the IP after MSG is bankrupt and continues from where they left off, bcs these are some incredible devs!
I hope it's a lesson for all in the community, don't deal w/ shady rich people! No matter how rich they're, they'll find ways to screw you.
 
It's a mortally wounded company. No profit, money spent, the image in ruins... They'll try to run it for a couple more years, struggling, before every asset goes at an auction.
I wish every success to Stephen Hood, but it's a very hard task. I hope the old Rfactor gang gets the IP after MSG is bankrupt and continues from where they left off, bcs these are some incredible devs!
I hope it's a lesson for all in the community, don't deal w/ shady rich people! No matter how rich they're, they'll find ways to screw you.
The fact they could possibly buy the corpse back makes it a better situation than being bought out by EA
 

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