The official GameSpot review might have been accurate at one time, but their score is too low for the game now! I am playing on "easy" / non-arcade and find the difficulty just right. You unlock tracks and weapons by placing in 1st, 2nd or 3rd. I have not won a race after falling far behind, but I have come back from dead last to place 2nd. On most tracks, I do see the AI cars tangle each other up. "Race" tracks do not allow "weapons" like machine guns, but they do allow oil-slicks, smoke-screens, and mines. The other tracks allow "weapons."
The weapon effects are well conceived. It reminds of the old pnp game Car Wars. The one map that I don't see is just an open DeathMatch / Arena. I hope the Devs make a map like that.
Download the Demo and see for yourself.
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