On the heels of today's rumors of the cancellation of Bayonetta 2 comes an announcement from Sega: Sonic and All-Stars Racing Tranformed will be heading to handhelds and consoles later this year.

The kart-racer will feature a weapons system and Sega-themed tracks, with characters from Golden Axe, Skies of Arcadia, Jet Set Radio, Crazy Taxi, Sonic (duh), and more making appearances in the roster.

The trailer shows Sonic's ride transforming from a car to a hovercraft/boat to a plane all in the breadth of a single track, perhaps taking a page out of Mario Kart 7's well-read book. in any case, that's where the "Transformed" seems to come from.

Burnt out on Mario Kart 7? Or are you still playing Crash Team Racing and Diddy Kong Racing? How do you think another kart racer will do? Let us know in the comments or on Twitter.