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Simulated racing or racing simulation, commonly known as simply sim racing, are the collective terms for racing game software that attempts to accurately simulate auto racing, complete with real-world variables such as fuel usage, damage, tire wear and grip, and suspension settings. To be competitive in sim racing, a driver must understand all aspects of car handling that make real-world racing so difficult, such as threshold braking, how to maintain control of a car as the tires lose traction, and how properly to enter and exit a turn without sacrificing speed. It is this level of difficulty that distinguishes sim racing from arcade racing-style driving games where real-world variables are taken out of the equation and the principal objective is to create a sense of speed as opposed to a sense of realism.In general, sim racing applications, such as rFactor, Grand Prix Legends, NASCAR Racing, Race 07, F1 Career Challenge, F1 2021, Assetto Corsa, GTR 2, Project CARS, iRacing and Richard Burns Rally are less popular than arcade-style games, mainly because much more skill and practice is required to master them. Some racing sims are geared towards more casual enthusiasts, and try to find a balance between realism and accessibility: these are generally called "semi-simulation" or "simcade" racing games. Popular simcade games include Gran Turismo, Forza Motorsport, Colin McRae Rally, F1, and NASCAR Heat.
Due to the demands on the computer system, racing sims require faster computers to run effectively, as well as a somewhat costly steering wheel and pedals for the throttle and brakes. Most arcade-style driving games on home systems can be played with a simple joystick controller, or even a mouse and keyboard. Conversely, many arcade racing games in amusement arcades frequently use hydraulic motion simulator arcade cabinets that simulate the driving of a vehicle, something which arcade-style racing games for home systems typically lack.
With the development of online racing, the ability to drive against human opponents as opposed to computer AI is the closest many will come to driving cars on a real track. Even those who race in real-world competition use simulations for practice or for entertainment. With continued development of the physics engine software that forms the basis of these sims, as well as improved hardware (providing tactile feedback), the experience has become more realistic.

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