The player has a radar beneath their fuel meter, which displays their current position on the map as well as the location of the flags and red cars. The third level and every fourth thereafter is a bonus round (called a "Charanging Stage"), where the objective is to collect the flags in a certain amount of time. In these bonus rounds, the red cars remain idle and will not chase the player unless their fuel is empty.
The game was a commercial success in Japan, where it became the sixth highest-grossing arcade game of 1980, and Namco's third highest that year below Pac-Man and Galaxian. In contrast, the game was not as successful in North America. By July 1981, Midway had sold 2,500 Rally-X arcade machines, significantly less than the company's other releases at the time. Dick Pearson of RePlay highlighted its colorful visuals and sound effects in a preview from the tradeshow, comparing its gameplay favorably to Pac-Man and writing that it "shows promise as an entertaining maze video game". A writer for Cash Box provided similar comments, further applauding its scoring system and layer of strategy. In 1991, Gamest listed it as being a "masterpiece" alongside New Rally-X, and believed its underwhelming critical and commercial reception was attributed to it being ahead of its time. Staff considered it a successor to Head On, as well as being influential for the maze genre.
The Special Flag has become a symbol for Namco and has made frequent appearances in games, usually as an item that awards an extra life. It has appeared in games such as Xevious (1983), Gaplus (1984), Tinkle Pit (1994), Tales of Phantasia (1995), Xevious Resurrection (2009), Super Smash Bros. for Nintendo 3DS & Wii U (2014), and Super Smash Bros. Ultimate (2018). Namco Bandai's "game consulting" service, which provides insight on the company's design philosophies to clients, is named Special Flag, as are its indoor restaurants located in its VR Zone amusement centers. Merchandise such as enamel pins and keychains featuring the Special Flag have also been produced.
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