The 2010 Sonic and Sega All-Stars Racing was a crossover racing game featuring characters and stages from all over Sega's history. It was critical and commercial success, so many fans hoped that a sequel would come. Now, their prayers have been answered with developer Sumo Digital's announcement of the much-anticipated sequel, Sonic and All-Stars Racing: Transformed. While the last title was a relatively-straightforward kart game, the hook this time is reminiscent of combining Mario Kart 7 with Diddy Kong Racing. At certain points, the karts can transform into planes or boats! Furthermore, the stages themselves will transform alongside the karts. Other new features include an XP system and a single-player adventure mode. New characters include Gilius Thunderhead (Golden Axe), and perhaps most notably, Vyse from the Dreamcast cult classic Skies of Arcadia. Sega is planning for Transformed to be this year's big Sonic game, and the developers are pulling out all the stops. At least 27 characters are planned, and it will be released by the end of 2012 for Playstation 3, Playstation Vita, Xbox 360, and Nintendo 3DS. It is also rumoured to be released for Nintendo's upcoming Wii U system.

The first trailer, featuring a teaser of the game's hook and several seconds of gameplay footage, can be seen here: