Guild Esports PLC (LSE:GILD, OTCQB:GULDF), the esports group, is gearing up to enter the rapidly growing sim racing sector with a new technical partnership with Fanatec, a leading provider of simulated racing equipment.
Under this collaboration, Fanatec will equip Guild's simulator facility, based at its London headquarters, with eight high-tech sim racing rigs and regular technology upgrades.
This will form the heart of the Sky Guild Gaming Centre, offering immersive simulator gameplay and experiential packages for corporate entities, the general public and professional teams.
The Guild Simulator Facility is expected to start contributing to the company's revenue by the third quarter of 2023.
The partnership also provides Guild, which is co-owned by former footballer David Beckham, with an opportunity to expand its esports division by tapping into new sponsorship categories, with discussions already in progress.
The sim racing trend, which sees players competing in almost lifelike racing scenarios, has seen significant growth in recent years.
Notably, it is an increasingly prominent pathway to traditional motorsports, with esports racers moving on to competitions such as the FIA Formula 2 Championship.
The global gaming simulator market, which includes sim racing, is projected to hit US$10bn by 2027, according to Asia Sports Tech.
"It's an exciting time for Guild as we embark on our maiden venture into the world of sim racing, by leveraging our existing flagship site in London's Shoreditch area at minimal capital cost, to generate incremental revenue streams for the company," said Guild chief executive Jasmine Skee.
"The Sky Guild Gaming Centre is rapidly becoming a versatile esports hub and our simulator facility will greatly enrich our offering to both corporate clients and the wider public.
"We're also looking into how we can utilise these simulators to achieve competitive success, which may involve expanding our professional roster."