SEGA has officially announced the awkwardly titled Sonic & All-Stars Racing Transformed. The sequel will be released late in the year for Xbox 360, PlayStation 3, PlayStation Vita, Nintendo 3DS and PC Digital Download. (Although chances are we’ll likely see a Wii U version at E3, especially since the Wii version of the original was the best selling. SEGA would be crazy not to include the format).

Each character gets their own transforming car/plane/boat

If you couldn’t tell from the screenshot above, Sonic & All-Stars Racing is a Mario Kart style driving game complete with weapons, crazy tracks and plenty of fan favourite SEGA characters. While last time the racing was confined strictly to the road, here you’ll also be given the chance to ride the waves in boats and also fly in planes much like Diddy Kong Racing. Unlike Diddy Kong however, here the vehicle changes happen on the fly as you approach new terrain with tracks changing as you race. For example after speeding on the track in the Super Monkey Ball stage, the ground begins to crumble, revealing beneath it rapid infested waters. It sounds like a great idea on paper and one that could bring with it plenty of shortcut opportunities.

Characters included so far look to be pretty much the same cast members from the last game (although a lack of Ryo in these shots is initially worrying) along with some new face such as Golden Axe dwarf Gilius Thunderhead and Vyse from Skies of Arcadia, among others. Tracks include the previously mentioned Monkey Ball style stage complete with Monkey Target section along with a Panzer Dragoon-themed course taking place mostly in the air.

With plenty more secrets and features it looks like Transformed could give Mario Kart a run for its money offereing what appears to be better options as well as plenty more fan service.

Add an Outrun and Streets of Rage stage and everything will be perfect. Expect more info at E3.