Tokyo Xtreme Racer 3 (or 首都高バトル 01 in the Japanese release) was released for the PlayStation 2 in 2003 as part of Genki's Shutokou Battle series. This entry in the series was released two years after the previous game, Tokyo Xtreme Racer: Zero. Much like other entries in the series, the objective is to become the fastest racer on the highways of Japan, but unlike those before it, TXR3 allows the players to race in Nagoya and Osaka instead of just Tokyo, and the Tokyo map is expanded to include the Yokohama area. In addition, this title adds a weather cycle. TXR3 includes a fully-licensed list of cars from a variety of Japanese, American, and European manufacturers instead of the old car model designation method of "Type-(technical model name)", and furthermore, the car list itself was culled of many repeat models so to simplify and reduce the number of cars. The A, B, and C car designations were also removed. Graphically speaking, Tokyo Xtreme Racer 3 is a definite improvement over previous entries. Car models feature a higher polygon count and are much more extensively detailed and lighting effects were also greatly improved, featuring light streaking effects, road reflections and higher quality car reflections.

2 years earlier... A machine known as the fastest, left in defeat. The name of that machine has not been forgotten. Along with him, went as many as 13 Ogre Military Officers, plunging Tokyo back into chaos. Osaka, Nagoya... Answering to the weakened Shutokou, new powers were being born in various areas. 2 years after the events of Shutokou Battle 0 (and sometime after the events of Tokyo Xtreme Racer: Drift 2), the news of the 13 Devils' defeat has been communicated through all of Japan. Tokyo is plunged into chaos and now two more cities want to compete: Osaka and Nagoya. The racers here will have to beat every team in these 3 cities, and maybe, have the opportunity to challenge the best drivers in each: Speed King & Dejected Angel in Tokyo, Seeks, Genesis R & D3 in Nagoya and No Loser & Darts in Osaka.