A group of Mario fans, engineers as part of Waterloo Labs, decided to brush aside special effects in favour of a "real-life" Mario Kart, where karts become modified in real time based on the items being used by racers.
These custom karts feature weapon "launchers" that interact with item boxes throughout the circuit, and using wireless RFID technology (think GamePad tech), drivers would be assigned a random power-up. A banana item would cause a cart to lock-up, or increase speed if using a star for example.
For more details on the setup and source code, visit the Real Life Mario Kart project page.