Tokyo Xtreme Racer is a one or two player racing game based on illegal street racing around the streets of Tokyo.

The game starts by giving the player $15000 so that they can buy their car. There are three types of car; Class A has the most powerful engines; Class B has mid range engines but are better balanced; and Class C cars lack power but have better handling. Needless to say the cash the payer starts with is sufficient for the lower cars in each group, players need to win cash if they are to upgrade.

After the car has been selected the player enters their name and customizes their number plate that's when the game really begins. There are seven 'game modes' of which five are different ways to play the game, these game modes are the same for all classes of car.

• Mode 1: This is the Quest mode where the player tries to rise to the top by looking for other racers to challenge
• Mode 2: This is the Quick Race mode, here the player starts on the road and a races a random AI opponent.
• Mode 3: The Time Attack mode where the player races around a course in Tokyo looking to set a new best time.
• Mode 4: Free Run where the player can drive anywhere in Tokyo
• Mode 5: Versus mode, this is the only two player part of the game
• Mode 6: This is where all the system configuration options, including the ability to customize the controller buttons, are kept
• Mode 7: In the UK release this option contains the DVD Extras, the US trailer for the film "The Fast And The Furious", and the short documentary "Tokyo Hardcore: Night Warriors"

Cars can be tuned, changed, and upgraded prior to each race. After each race the player can replay their race, save it to replay later, or just save the result.