Sonic & All-Stars Racing Transformed is the sequel for the first racing game of the Sega Superstars series. The game was leaked by Kotaku at the New York Toy Fair by revealing, according to Kotaku, "Sega's Sequel to Sonic & Sega All-Stars Racing".

It features a transformation element of racing gameplay unique to that of any other racing game in the Sonic the Hedgehog series.