F1 Challenge is a game for the Sega Saturn that is focused around single-seat auto-racing. The game features 3 real circuits that are used in actual formula one racing. The circuits that appear in the game are Hockenheim, Monte Carlo, and Suzuka circuits. In the game you can play as five drivers: Michael Schumacher, Jean Alesi, Ukyo Katayama, Damon Hill, and Mike Hakkinen. Each of five drivers are associated with 5 race car brands: Benetton, Ferrari, Tyrrell, Williams, and Mclauren. When a person is engaged in a race in the game they can switch between different views in the race car, including one that shows the rear view of the race car.
The gameplay is said to be like other Sega racing games, like Daytona USA, except the game tries to focus around simulation more than arcade style. The game is more focused around tight controls, like a simulator, than loose drifting and skidding.