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.

Due to the complexity and demands of mimicking real-life driving, racing sims require faster computers to run effectively, as well as a steering wheel and pedals for the throttle and brakes for the immersion.

While using a simple gamepad, joystick or even a mouse and keyboard may suffice for most arcade-style driving games on home systems, it won't provide the same level of immersion and realism as using a racing wheel and pedals. In recent years, many sim racing experiences have been developed for consoles, such as the PlayStation and Xbox. While these games can be played with a controller, it is recommended that players invest in a racing wheel and pedals. With the development of online racing, the ability to drive against human opponents and computer AI offline is the closest many will come to driving cars on a real track. Even those who race in real-world competition use simulations for practice or for entertainment. With continued development of the physics engine software that forms the basis of these sims, as well as improved hardware (providing tactile feedback), the experience has become more realistic.

In general, sim racing gameplay style applied in several video games like iRacing, Assetto Corsa and Assetto Corsa Competizione, Gran Turismo, among others.