The generic racing game is a form of Earth entertainment in which two race cars attempt to push each other off a straight track. It is played by Jack, Miko, and Raf, presumably because hanging around giant robots isn't satisfying enough, and by Bumblebee, who presumably likes to own Raf at his own game.
The generic racing game was being played between Bumblebee and Raf through a display on Bee's dashboard, with the former winning due to his longer time driving.
It was played later by Miko and an unenthusiastic Jack, who actually ended up winning, but didn't get to savor it due to the power outage that wiped out their scores.
Jack later interrupted Raf's game to ask if he could borrow Bumblebee for an illegal street race. Afterward, Miko and Raf were playing it when Arcee started wondering where Jack had gone.
When his sister asked how he became so good at the racing game, Raf replied that he knew "a guy who knows cars".
Later, Raf and Miko were playing it when Bumblebee, unable to transform, came over to watch. Realizing their mistake, Miko hastily switched it off.