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Tokyo Xtreme Racer 3 is the fourth installment of the Tokyo Xtreme Racer series, which takes place on the highways of Japan. TXR3 is the first game in the series to take the racing outside of Tokyo, as highways in both Nagoya and Osaka are selectable.
The gameplay in TXR3 is extremely similar to that of Tokyo Xtreme Racer Zero. To start a race, you pull up behind a driver and flash your high beams. In order to defeat the driver, you must take down their health bar to zero by either making them crash or getting a lead, which drains their health. The bigger the lead, the bigger the drain. For the most part, opposing drivers are divided into gangs, and defeating every driver in a gang triggers a challenge from the gang's "boss." Upon defeating any driver, you unlock their car for purchase.
TXR3 has an addition of licensed vehicles from numerous car manufacturers, a first for the series as it used generic cars and names that were loosely based upon the real thing. There are, however, no vehicles from Honda.
Compared to the previous games TXR3 has much less complex traffic. There is only one type of non-race vehicle that appears on tracks, a pace car, and a maximum of two of them will appear on the highway at once. This change was likely made to distance the series from illegal street races because of the change to licensed vehicles.
The game cannot be completed at 100% due to an error in the Yen-to-Dollar exchange. The final racer requires 100,000,000 credits to compete against, but the game can only count up to 99,999,999 credits. The only way around this is through use of a cheat device.