TROY, Michigan >> The automotive industry is flipping on its head a long tradition of car racing video games by bringing the gaming experience into the vehicles.

Collect virtual coins with an augmented-reality car projected onto the live camera feed from the vehicle, play Uno through the infotainment screen or connect a Bluetooth controller and race to victory online.

Major automakers are pursuing the software-defined vehicle. With that comes more powerful computers in the vehicle and better graphic processing units. They’re looking for opportunities for recurring revenue streams in the form of subscriptions. Electric vehicles potentially create new circumstances in which customers are sitting in their vehicles for longer periods of time while charging. And every brand is seeking ways to help differentiate itself in the market and lure buyers.

Some are starting to bet that gaming could be a part of how they address those opportunities. The $183.9 billion global games market in 2023, according to gaming data platform Newzoo, could be a lucrative place to look.

“When you have an electric vehicle, the brand characteristics and brand differentiation you get from the feel and the sound, my understanding is that a lot of that is all vanishing,” said Karl Brauer, executive analyst at auto information website iSeeCars.com. “The gaming is almost like the new cool. It’s not the exhaust or how fast it goes zero to 60 (mph). It’s how big is the screen and how many cool things can you do with it? Gaming is one of them.”

Seeking relevancy

Since 2019, Tesla has offered an arcade of thousands of games like Chess and Solitaire through its vehicles’ infotainment screens. Some games like “Beach Buggy Racing 2” employ the vehicle’s steering wheel and brake to play. Newer versions of the Model S and Model X can access Valve Corp.’s Steam, an online store with thousands of games like “The Witcher 3” and “Cyberpunk 2077.”

In-vehicle gaming did come under scrutiny by the National Highway Safety and Traffic Administration in 2021 when it investigated Tesla’s Passenger Play offering that allowed vehicle passengers to play games while the vehicle was in motion. In December 2021, the EV maker agreed to remove the feature, allowing the games only to be played while the vehicle was in park.

More offerings from other brands are becoming available for when vehicles are in park. In November, BMW AG made available the AirConsole platform in its infotainment system. It features 20 games, most recently adding Mattel Inc.’s Uno and “Who Wants to be a Millionaire?” Volkswagen AG last month announced a partnership with AirConsole, as well.

In China, Mercedes-Benz Group AG recently launched, through an over-the-air update, “Need for Speed: Assemble” in collaboration with Chinese tech conglomerate Tencent Holdings and California-based video game company Electronic Arts. The game is compatible with Bluetooth controllers. Rollout to other regions is in the works, along with other offerings.

Mercedes last month also announced a partnership with cloud gaming provider Boosteroid that has access to more than 1,000 games, including “Fortnite” and “Sea of Thieves.” The app next year will be available to be downloaded with the third-generation MBUX infotainment system’s Entertainment Package Plus in Europe and North and South America.

Ford Motor Co.’s new digital experience debuted on the 2024 Lincoln Nautilus’ panoramic display. Users have access to Google Play apps. Additionally, the Dearborn automaker worked with French video game company Gameloft SE to tailor its “Asphalt Nitro 2” racing game to the in-vehicle infotainment, or IVI, experience. Ford drivers also have immediate access to the Shelby GT350R in the game. Users can play with a Bluetooth gaming controller.

“We think it’s still very early in the development of gaming apps for the in-vehicle experience,” Ford spokesperson Alan Hall said in an email, “but we are excited to have infotainment systems that have the computing capability, beautiful displays, and user experience to enable us to enhance what our customers can do.”

Ford emphasized the power of partnerships like with Gameloft in adapting gaming for vehicle cockpits.

“The hardware capabilities of IVI systems are advancing rapidly, enabling them to handle increasingly complex software, including games — now in higher demand as families and friends spend more time together in vehicles,” Henry Pan, vice president of global business development, wrote in an email. “This makes cars an ideal setting for interactive, engaging entertainment that everyone can enjoy.

“For now, the focus should be on introducing users to in-car gaming, allowing them to enjoy this new feature. Over time, they’ll come to see the value in paying for premium content that further enhances their experience.”

When asked about in-vehicle gaming, Jeep and Dodge parent Stellantis NV pointed to the 2024 Dodge Charger Daytona EV. In a statement, Dodge CEO Matt McAlear said the inspiration for “real world ‘gaming’” concerning the vehicle resulted in the development of the Drive eXperience Recorder system. It allows for drag and circuit race recording, providing in-car synchronized logging of audio, video and vehicle data that drivers can analyze after their run.

General Motors Co. spokesperson Stuart Fowle said in-vehicle gaming is on the company’s radar, especially for Cadillac with pillar-to-pillar screens in the vehicle. At this time, however, it hasn’t announced any partnerships or concrete initiatives in this space.

Virtual reality

Applications of in-vehicle gaming remain in the early stages, but opportunities in mixed and virtual reality are already being explored. As the industry looks eventually toward fully autonomous driving, opportunities can open further.

“If it’s in autonomous mode or at least for kids in the back seat, and the technology can recognize where it is and where it’s heading, and you start having ... it insert things into that reality, that could end up being huge,” Brauer said. “The car becomes a better environment for it.”

Performance-focused BMW M offers for $212 (190 euro) a 90-minute mixed-reality experience at its driving academy in Maisach, Germany.

Participants wear virtual-reality goggles as they drive a BMW M4 Competition or BMW M2 Coupe´ around a track, immersed in a world that combines reality with a virtual city circuit.

Others are exploring opportunities in mixed reality for passengers. French automotive supplier Valeo SE this spring at South by Southwest in Texas introduced Racer, an extended reality in-car gaming experience for passengers developed using game engine Unity.

In the second row of the Racer vehicle, tablets feature an app into which users type their initials. The game, however, could be accessed by any type of device like a smartphone. The game augments a virtual racer onto live footage captured from the cameras already on the vehicle, and using a controller, players seek to collect the most virtual coins that appear on the road. Lightning bolts offer additional boosts to go faster, and tires and traffic cones can cause a loss of points. If the racer hits or gets in the way of a real vehicle on the road, it even spins out.

Players can customize their vehicles and characters. They also can access previously recorded feeds from other locations on which to play like the Golden Gate Bridge in San Francisco. There’s an option to turn that into a space-themed virtual experience, as well, where the vehicles on the road appear as UFOs.

Valeo has an interested customer in the product, said Derek de Bono, software-defined vehicle product vice president and group product marketing vice president. It has a proof of concept running in the second half of this year and expects to start production in 2025 or ‘26.

The goal of the project, however, has been to highlight how the data that already is available using cameras and sensors on vehicles today can be used, said Jeff Shay, president of North America. The supplier also wants to see common standards for software to access that data.