Impact Racing is set in a futuristic world where drivers compete in high-speed races across three distinct environments: city, mountain, and space. The objective is not only to complete laps within time limits but also to destroy a certain number of vehicles on the track.
The gameplay revolves around racing cars equipped with various mounted weapons, such as mines, concussion missiles, smart bombs, and heat-seeking missiles. Power-ups like energy, armor, and time bonuses can be collected to gain an advantage over opponents. Each car has unique statistics and built-in weapons that can be upgraded by completing bonus stages.