Toys Racer is a kart racing game based on the Toy Story films. Completely different from another game with the same name, the Game Boy Color version features circuit racing on ten tracks and employs pre-rendered full motion video to create 3D graphics.
The game includes two modes: a tournament and a quick race. Only three tracks are available from the start in quick race mode, the others have to be unlocked in the tournament. Players can select from four Toy Story characters: Buzz Lightyear, Woody, Bo Peep and Mr. Potato Head. The tracks are located in Andy's house, the Pizza Planet and the streets around the neighborhood.
Races are against three competitors and are seen from a third-person view behind the player's kart. The tracks have been pre-rendered in simple 3D; hitting the gas begins playing the track video to give the illusion of the kart moving forward on the track. Turns are thus automatic, but steering is still necessary to avoid crashing into the sides of the track and slowing down. Various items can be found on the road, some with positive effects, while others have negative ones.
The game also features various power-ups like horseshoes for invincibility, tires for perfect grip, and golden coins that become necessary if a character is removed from the game by finishing in fourth place or not completing a lap within the time limit. Players can progress through the tournament by storing passwords and unlock new tracks, difficulty levels, and race options.