F1 Challenge was released for the Sega Saturn in 1996 and allowed players to control five authentic Formula One cars and their drivers, including Michael Schumacher and Damon Hill. The player could make changes to their car before each race, adjusting factors such as tire pressure and wing angle.
The game featured six tracks, including Hockenheim, Monte Carlo, and Suzuka, as well as a fictional track called Neo City. Players could choose from two behind-the-car views and use a pop-up screen to check their rear view mirror. The game included an F1 Constructors Association license, allowing players to use 13 teams with 26 drivers from the 1995 season.