What Sector3 Studios AB does

Sector3 Studios AB, operating commercially as KW Studios, is a Swedish-registered game development studio headquartered in Lidköping and integrated within the German KW Automotive group. The company builds and operates RaceRoom Racing Experience, a free-to-play PC racing simulation distributed through Steam that has been continuously developed since 2013. RaceRoom features over 180 officially licensed cars from major manufacturers, more than 60 tracks worldwide, and complete racing series integrations for FIA WTCR World Touring Car Cup, DTM, and ADAC GT Masters. The studio's technology stack centers on a proprietary physics and audio engine refined over a decade, with daily ranked multiplayer events and structured esports competitions driving ongoing engagement.

The company runs on a freemium, product-led go-to-market motion: the base game is free on Steam and monetizes through optional premium content such as cars, tracks, and packs, with prices not publicly disclosed. A small, distributed team — drawing from Sweden, the UK, France, Germany, the Netherlands, Poland, and Estonia — supports the product alongside sister companies in the KW Automotive group, namely TrackTime (pro-grade sim rigs) and Ascher Racing (premium direct-drive wheels), which together form a vertically aligned software-and-hardware sim racing offering. KW Automotive, formed in 1992 and headquartered in Fichtenberg, Germany, is the strategic parent and provides the operational and motorsport-credentials backbone, including relationships with Manthey Racing, Falken Motorsport, Rowe Racing, and BMW Motorsport.

Sector3 Studios serves primarily individual sim racing enthusiasts and competitive esports racers globally, with no disclosed enterprise or B2B channel. Audience reach is multi-regional — anchored in Europe but with distribution leverage from KW Automotive's subsidiaries in the USA, China, Taiwan, Japan, Great Britain, and Switzerland — and the user community is actively maintained through a XenForo-powered forum with Steam authentication, multiple social channels, and a structured league infrastructure.

Name

Sector3 Studios AB

Legal name

Sector3 Studios AB

Website

https://sector3studios.com

Company type

Private

Founded year

2013

Operating status

Operating

Headcount range

11–50 employees

Short description

Sector3 Studios AB (KW Studios) is a Swedish PC game developer and subsidiary of Germany's KW Automotive group that builds and operates RaceRoom, a free-to-play racing simulation on Steam featuring 180+ officially licensed cars, 60+ tracks, and official FIA WTCR, DTM, and ADAC GT Masters series for individual sim racing and esports enthusiasts worldwide.

Ownership category

akta.pro rank

Headquarters

HQ city

Lidköping

HQ country

Sweden

HQ region

Europe

Offices1 record

Markets served

GTM type

B2C

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Supply Chain

Revenue model

1. RaceRoom Game Sales: Free-to-play racing simulation on PC distributed through Steam, with potential monetization through additional content, cars, tracks, and premium features
2. Esports Events and Competitions: Daily ranked events and regular esports competitions that drive engagement and community growth

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Sector3 Studios AB (operating as KW Studios) develops and publishes RaceRoom Racing Experience, a free-to-play PC racing simulation featuring over 180 officially-licensed cars, more than 60 tracks, and complete series from FIA WTCR, DTM, and ADAC GT Masters. The studio sells the base game free via Steam and monetizes through additional premium cars, tracks, and content, supported by daily ranked multiplayer events and a community-driven esports program.

Product overview

Sector3 Studios AB operates as KW Studios, a small international team of developers (from Sweden, UK, France, Germany, Netherlands, Poland, and Estonia) focused on racing simulation software. The core product is RaceRoom Racing Experience, a free-to-play PC racing simulation first released in 2013. KW Studios is part of the KW Automotive group, which provides complementary hardware including TrackTime pro-quality sim rigs and Ascher Racing premium direct-drive wheels. KW Automotive, headquartered in Fichtenberg, Germany (founded 1992), offers the largest suspension program in the world with over 26,000 options through sub-brands including ST Suspension, AP Sport, Reiger, Belltech, LSD Doors, and BBS Wheels.

Differentiator

Problem solved

Functional benefit

Brands

• RaceRoom: Premier free-to-play racing simulation on PC, home to official race series like DTM, WTCR, and ADAC GT Masters

Products and services

• RaceRoom Racing Experience A premier free-to-play PC racing simulation distributed via Steam, featuring over 180 officially-licensed cars from prestigious manufacturers, more than 60 tracks worldwide, and complete racing series including FIA WTCR World Touring Car Cup, DTM, and ADAC GT Masters. The game offers top-notch physics and sound, daily ranked esports events, and regular competitions. It targets individual PC gamers and sim racing enthusiasts.

Quantifiable outcome

• 180 officially-licensed cars from prestigious manufacturers
• +1 more outcomes

Named customers1 record

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature4 records

Partnerships

Nine partnerships are on record, tiered core and flagship.

• Manthey RacingcoreStrategic or Co-development PartnerKW Automotive Competition department works closely with Manthey Racing, a top racing team in motorsport, supporting their racing programs with KW suspension products and technology.
• Falken MotorsportcoreStrategic or Co-development PartnerKW Automotive has partnership with Falken Motorsport racing team, providing suspension technology and engineering support.
• Rowe RacingcoreStrategic or Co-development PartnerPartnership with Rowe Racing team for motorsport competition, combining KW Automotive's suspension expertise with racing team performance needs.
• BMW MotorsportcoreStrategic or Co-development PartnerCollaboration with BMW Motorsport for racing development and technology sharing in motorsport applications.
• FIA WTCR World Touring Car CupflagshipStrategic or Co-development PartnerComplete racing series featured in RaceRoom game with official licensing from FIA WTCR World Touring Car Cup.
• DTM (Deutsche Tourenwagen Masters)flagshipStrategic or Co-development PartnerOfficial racing series license and game integration with DTM championship, one of the premier touring car series.
• ADAC GT MastersflagshipStrategic or Co-development PartnerPartnership with ADAC GT Masters racing series, featuring complete series representation in RaceRoom.
• Ascher RacingcoreOEM/ Whitelabel/ Licensing PartnerPremium direct-drive wheel manufacturer within KW Automotive group. Ascher Racing produces high-quality steering wheels for sim racing, complementing the RaceRoom software.
• TrackTimecoreOEM/ Whitelabel/ Licensing PartnerPart of KW Automotive group, TrackTime produces pro-quality sim racing rigs and equipment, combining hardware and software for complete sim racing solutions.

Scale indicators6 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• iRacing.com Motorsport Simulations: iRacing is the leading subscription-based PC sim racing platform with officially licensed content, ranked multiplayer, and esports leagues — the closest direct competitor to RaceRoom in both business model (paid-access licensed content) and target audience (serious sim racing enthusiasts).
• Kunos Simulazioni: Kunos Simulazioni develops Assetto Corsa and Assetto Corsa Competizione, PC sim racing titles with officially licensed GT3/GT4 cars, real track laser-scans, and esports championships (SRO E-Sport GT Series). Directly comparable product offering to RaceRoom in licensed touring/GT sim racing.
• Slightly Mad Studios: Developer of Project CARS and Project CARS 2, a multi-platform racing simulation franchise with officially licensed cars and tracks. Comparable in target market and product category, though at a larger AAA scope; now operating under Codemasters following acquisition.
• Reiza Studios: Reiza Studios is an indie Brazilian developer of Automobilista and Automobilista 2, PC-focused sim racing titles with strong physics and a broad licensed content library. Closely comparable in scale, philosophy (indie PC sim racing), and content breadth to Sector3/RaceRoom.

Broad incumbents

• Turn 10 Studios: Turn 10 Studios develops the Forza Motorsport franchise for Microsoft Xbox/PC — a broad incumbent in the racing simulation category with substantially larger scale, AAA budgets, and platform exclusivity. Comparable category but different platform and scope.
• Polyphony Digital: Polyphony Digital develops the Gran Turismo franchise for Sony PlayStation — a broad incumbent in the racing simulation category with much larger scale, AAA budgets, and console exclusivity. Comparable product category but vastly different platform and business model.
• Codemasters / EA Sports: Codemasters (now part of Electronic Arts) publishes the F1, DiRT, WRC, and GRID franchises — broad incumbents covering sim and arcade racing on console and PC. Comparable motorsport licensing DNA (FIA series) and adjacent target audience.

Others

• Fanatec: Fanatec is a leading sim racing hardware manufacturer (wheels, pedals, cockpits) — adjacent to Sector3 via shared sim racing ecosystem, parallel to Ascher Racing/TrackTime as a KW group peer in steering wheel/pedal hardware.
• Thrustmaster: Thrustmaster (a Guillemot Corporation brand) manufactures sim racing wheels, pedals, and gamepad hardware. Ecosystem peer comparable to Ascher Racing/TrackTime within the broader sim racing value chain.

Emerging players

• Competition Company (Rennsport): Competition Company is developing Rennsport, a next-generation PC sim racing platform backed by major motorsport partners and emphasizing esports. An emerging player targeting a similar serious-simmer audience with modern technology and significant partnerships.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/Sector3studio
• Facebookfacebook.com/Sector3studio
• Instagraminstagram.com/kwstudios_dev

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sector3 Studios AB