Magic Karts is a cancelled racing game that was in development in 2000/2001 by Paradigm Entertainment for Playstation 2, planned to be a spiritual sequel to Beetle Adventure Racing, one of the most interesting Nintendo 64 racing games. Even if this would have not used Volkswagen New Beetles brand of cars as the first game, Magic Karts would have probably have huge levels to explore while racing again other CPU cars (or friends in multiplayer mode), with colorful tracks full of secrets and hidden shortcuts. Unfortunately the game was never released, probably because Paradigm never found a publisher interested in this game.
Thanks a lot to Hey Hey for the link!
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