For what it's worth, David Kaemmer (co-founder of the now defunct Papyrus) has some interesting thoughts from an insider's perspective about some of the issues which are being discussed in this thread; namely, the market for simulations and non-simulation racing titles. Read them here:
http://www.gamespot.com/features/6103365/p-8.html That is just one section from a much larger article about the history of Papyrus which is worth a read.
Here's what he has to say:
"... interest in simulations, a category somewhat different than most games, hasn't grown at the same rate as interest in games in general. Simulations are more difficult to market, since the fundamental enjoyment you get out of them is learning a difficult skill. People buying a toy--which is how people think of computer 'games'-- apparently don't expect or want to master a difficult skill. ...
The computer game business is really becoming a toy business, especially with the popularity of console gaming. That's not the right market for a simulation. ...
The real problem is that we're reaching the wrong customers. If Papyrus were to have dumbed down the experience in order to make a console game, they would have had no competitive advantage. There are a zillion driving 'games' out there and many of them look really nice since the console budgets allow for a lot of flash. But none of them are true driving simulators, despite what they say. They don't
need to be. They are being sold by the licenses. ...
For auto racing simulations there has always been a disconnection between the experience as a participant, which is what we were providing, and the experience as a spectator, which is what has always been used to sell the game. Auto racing is far more exciting for the participant than for the spectator, but people who haven't participated in it don't realize that. They are more interested in the soap opera that is professional racing, in the personalities of the drivers, and the paint schemes on the cars. That's why we've always had to rely on big licenses: NASCAR, IndyCar, F1, Porsche, Ferrari, and so on. Unfortunately, those licenses are getting more and more costly, and now it is absolutely necessary to be making console games to be able to afford the licenses. ..."
The full article can be read here:
http://www.gamespot.com/features/6103365/index.html