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Pajderman said:

Adding some additional clues.

#49 Released after one of the most popular racing series first title but on a system one generation behind. This third installment also featured weapons to make life miserable for the other racers.
In the races you could collect letters spelling the game title in order to upgrade your vehicle. The developers next racer featured a mammal with a red cap as its titular character.

I was already thinking it but am confused by “Third game”. With that last hint I’ll try it anyway;

RC Pro Am II?