I was wondering how this actually worked as a game. This Japanese arcade flyer has some actual gameplay graphics: http://goo.gl/B6Itl
Laserdisc backgrounds with 8-bit racing car graphics overlaid. Would probably have been mind-blowing to see back in 1983, when POLE POSITION was state-of-the-art for games with traditional graphics, though, some of those the trippy LSD visuals between (and later on during) the race would have been mind-blowing in a different way. And the Japanese model's eye and lips with the rainbow grid road, whawhawhawhat?
Also, bonus points for video of classic Fuji raceway from the days before they re-configured it for racing with extra drifting.