In Gran Turismo 4, the characteristics of the cars are realistically designed and calculated so that they handle to the "real-life" physics of that particular vehicle, taking into account weight, speed, friction, wind, and more. To further enhance the realism of the driving experience, new technology blends real-time action with a photo-fixed background to immerse the player in real-life environments such as New York City, the Grand Canyon and others. Highly detailed vehicles and environment mapping create broadcast-quality graphics, from light and competitor car reflections on the player's automobile to leaves on a tree shaking in the wind.

The arcade mode allows players to compete against each other or the artificial intelligence on select courses. The simulation mode allows players to start from the bottom and earn their way up the ladder as they acquire driving licenses, race to earn money, unlock cars and courses, buy and sell cars, upgrade parts and compete in various championships. Playable from both first- and third-person perspectives, Gran Turismo 4 offers advanced opponent behavior to capture real-life racing and unpredictability of finishes.

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