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My question was aimed specifically at the racing sim genre. I get the purpose of Burnout, Need For Speed, etc. Are Forza, Gran Turismo, and Drive Club all aiming to be a racing sim? If so, why care about a studio closing, that didn't get as good review scores as the competition? Does there really need to be more than one or two racing sim games?

I think an FPS where you are dead in one shot would be boring. I also, think it would be the only game of its type in the genre, and would have a very niche market. That kind of sounds like having an RPG where you have to remember to eat, and sleep. Realism usually takes away from gameplay IMO.