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It was an open world Mushroom Kingdom game. Mario walks around stomping Gombas on the head, stealing Karts, driving around. At some places the camera gets a fixed position and the world turns into a platformer (much like Lego City). When Mario finds the Wing Cap he can fly around the entire world. And when he finds the Fludd he can reach places he can't reach otherwise.
The story was of course about the evil gangster boss Mr. Bowser who kidnap the princess and Mario has to fight Mr. B:s minions to save her.