We announced Sonic & All-Stars Racing Transformed just one week ago, and gave you guys your first look at the new & returning characters as well as two of the levels – Dragon Canyon from Panzer Dragoon, and Temple Trouble from Super Monkey Ball. Today, we’re showing you some concept art from the Dragon Canyon level.

Panzer Dragoon was released in 1995 for the SEGA Saturn. The Dragon Canyon Empire level takes its cues from the bleak, fallen lands which provided the setting for the legendary SEGA Saturn game and its sequels. Once a great and prosperous empire, it’s civilization was destroyed millennia ago; the last remaining people live in fear of biological weapons which they created in the past. The one last hope was a blue dragon, discovered in an ancient temple, and is the centerpiece of this level. The winding canyons are heavily inspired by the on-rails nature of the original titles, however the land, sea, and air options and ever-changing environment present these ravines in a very different way.

You can see how this concept art is echoed throughout the level.

We’ll take a closer look at Temple Trouble later this week.

Today, we are announcing Sonic & All-Stars Racing Transformed, a thrilling new racing experience featuring Sonic the Hedgehog and a fantastic cast of SEGA All-Stars competing across land, air and water in vehicles that fully transform from cars, to planes to boats.  Sonic & All-Stars Racing Transformed will speed on to the Xbox 360, PlayStation 3, PlayStation Vita, Nintendo 3DS, and PC Digital Download late in 2012.

Following on from the huge success of Sonic & SEGA All-Stars Racing, the characters now have their own unique transforming vehicles designed to take advantage of the varying terrain.  The line up on the Sonic & All-Stars Racing Transformed grid sees SEGA favorites – including Sonic the Hedgehog, Dr Eggman and AiAi – return to battle against newcomers that include Gilius Thunderhead of Golden Axe and Vyse of Skies of Arcadia.  The brand new dynamic environments and tracks in Sonic & All-Stars Racing Transformed are once again inspired by SEGA’s illustrious gaming history. When the road falls away beneath you on Super Monkey Ball’s Temple Trouble track your car transforms into a boat and speeds down the rivers and rapids, whilst the Panzer Dragoon inspired track, Dragon Canyon, takes you into the sky in complete control of your plane, barrel rolling to out-maneuvre rivals and obstacles before transforming back into a car and racing to the finish line.

"Given the fantastic feedback we received from critics and consumers alike for the first game, we really wanted to push the boundaries on our follow up game, Sonic & All-Stars Racing Transformed” commented David Corless, Global Sonic Brand Director.  "The transforming vehicles allow us to do this – as well as drifting your car around the corners of a track, you get to fly your plane and pilot your boat against others all within one race.  Add to this a grid full of star characters, retro IP, fun, fast race modes and cool tracks and racing fans of all ages are sure to love this one!”

Sonic & All-Stars Racing Transformed also sees the popular All-Star moves return with a brand new mechanic allowing your All-Star bar to power up faster if you race daringly and stylishly.  An all new fair weapon system ensures that weapons fired at your vehicle can either be blocked or evaded once you have gained the skills to do so, making each race a unique and exhilarating experience whether it’s on water, in the air or on land.  Old rivalries can be settled and new track records set in the enhanced online multiplayer mode, whilst the Grand Prix mode and competitive Battle Arenas will prove that Sonic & All-Stars Racing Transformed is certainly set to change the rules of the race.

Sonic & All-Stars Racing Transformed will speed on to the Xbox 360, PlayStation 3, PlayStation Vita, Nintendo 3DS, and PC Digital Download late in 2012.