Gameplay in this "8-bit" version of GP World is similar in concept to the arcade GP World but given the wildly differing hardware, different in execution. Most notably all graphics in the game are generated in real-time by the SG-1000 rather than streamed from a LaserDisc, which in turn leads to more predictable car physics. The concept of racing in four different types of GP is scrapped, replaced instead with a GP that spans the world and three selectable difficulties.
Like the original, the game uses a third person perspective similar to the likes of Turbo (although the camera is positioned behind the steering wheel), and sees the player race in a formula one car, navigating the course and avoiding other drivers. This version is also notable for having a simplistic track editor. It is likely that the SH-400 controller was designed with this game in mind.