A power surge fried the Matt Stone Racing driver's computer and wheel, which left him unavailable to finish any of the three races in round eight.
The technical failure comes after Jacobson claimed a podium finish in round seven last week.
The in-form driver, who was sitting seventh in the championship before the recent round, has dropped to 10th on the standings.
In a post on his Instagram account, the 28-year-old said Wednesday night's power surge had left him gutted, as he looked ahead to finishing off the final two rounds strongly.
“To be running top 10 in the championship for so long throughout the season, then to miss out in round eight is a bit gutting,” Jacobson said.
“Hopefully we can get the simulator back up and going for round nine and 10, and see what we are really capable of to finish off.
“I'm not going to give up, but pretty gutted about last night.
“Sorry we couldn't make it happen.”
Before Jacobson's night ended, the speed demon was able to strut his stuff in qualifying.
In the opening race at Phillip Island, Jacobson qualified 12th and looked set to continue his dazzling form and seal another top-10 race finish.
But minutes before the grid launched into the opening race, Jacobson's iRacing set-up was left overheated and fried.
“Unfortunately, I had a power surge about two minutes before the first race,” Jacobson said.
“These things happen and being that we are racing simulators, it completely fried everything; my PC and my steering wheel was absolutely unusable.
“We tried everything we could, but couldn't quite figure it out in the time we had left. It was one of those unfortunate things.”
Looking ahead to next week, round nine of the All Stars E-Series heads back to the United States for stints at Road Atlanta and Road America.
20°C