Steinberg praised the graphics but wrote that the game "would be considered less than half of a completed game under normal circumstances. Scott Steinberg of IGN criticized the game's limited number of race tracks and wrote: "Tracks, designed to look gigantic in relation to your puny Hot Wheels racer, are neither complex nor lengthy". The game includes a two-player option, in which both players play on a split screen. A turbo boost can be used by the player to temporarily speed up, but must recharge after each use. Each vehicle is based on a real Hot Wheels toy, and each one has different handling characteristics, such as top speed and acceleration. The player begins with two vehicles, while five more can be unlocked by completing championship races, and by finding secret areas and hidden stars in each track.
Pursuit consists of a single race with three laps the racer in last place explodes at the end of each lap, with the final remaining car being the winner. In Championship, the player must finish each race in first place in order to advance to the next race. In Single mode, the player can choose any track on which to race. Three gameplay modes are featured: Single, Championship, and Pursuit. The game features three race tracks, each one with their own unique hazards and obstacles: an office, a child's bedroom, and a beach. Hot Wheels Micro Racers features mini Hot Wheels vehicles as the game's playable and computer-controlled racers, with gameplay consisting of arcade-style racing.