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Simulation style racing games strive to convincingly replicate the handling of an automobile. They often license real cars or racing leagues, but will use fantasy cars built to resemble real ones if unable to acquire them.

Although these racing simulators are specifically built for people with a high grade of driving skill, it is not uncommon to find aids that can be enabled from the game menu. The most common aids are traction control (TC), anti-lock brakes, steering assistance, damage resistance, clutch assistance, automatic gearbox, etc. This softens the learning curve for the difficult handling characteristics of most racing cars.

The Formula One World Championship has a fan base all over the world and is one of the racing series with the most simulation adaptations.

Some of these racing simulators are customizable, as game fans have decoded the tracks, cars and executable files. Large internet communities have grown around the simulators regarded as the most realistic and many websites host internet championships.

Arcade style racing games put fun and a fast-paced experience above all else, as cars usually compete through odd ways. They often license real cars and leagues, but are equally open to more exotic settings and vehicles. Races take place on highways, windy roads or in cities; they can be multiple-lap circuits or point-to-point, with one or multiple paths (sometimes with checkpoints), or other types of competition, like demolition derby, jumping or testing driving skills. Popular arcade racers are the Daytona USA series, the Rush series, the Cruis'n Series and the classic Out Run.

Over the last three years there has been a trend of new street racing; imitating the import scene, one can tune sport compacts and sports cars and race them on the streets. The most widely known ones are the Need for Speed: Underground series, Midnight Club 3: DUB Edition, Street Racing Syndicate, Burnout and Juiced.