Simulated racing or racing simulation, commonly known as simply sim racing, are the collective terms for racing game software that attempts to accurately simulate auto racing, complete with real-world variables such as fuel usage, damage, tire wear and grip, and suspension settings. To be competitive in sim racing, a driver must understand all aspects of car handling that make real-world racing so difficult, such as threshold braking, how to maintain control of a car as the tires lose traction, and how properly to enter and exit a turn without sacrificing speed. It is this level of difficulty that distinguishes sim racing from arcade racing-style driving games where real-world variables are taken out of the equation and the principal objective is to create a sense of speed as opposed to a sense of realism.

Racing games are a video game genre in which the player participates in a racing competition. They may be based on anything from real-world racing leagues to fantastical settings. They are distributed along a spectrum between more realistic racing simulations and more fantastical arcade-style racing games. Kart racing games emerged in the 1990s as a popular sub-genre of the latter. Racing games may also fall under the category of sports video games.