The new update, which brings the game up to version 2.0, adds a new split-screen multiplayer mode.
This allows players to use a single Nintendo Switch to control two karts, whereas before each kart needed to connect to a separate Switch.
It also adds a new Relay Race mode, where 2-4 players can play co-operatively.
Mario Kart Live Home Circuit - version 2.0 trailer
In Relay Race, players use a single kart and take part in an eight-lap race, which control swapping over to different players at set times during the race.
As well as the new multiplayer options, version 2.0 also adds a new Cup called the Luigi Cup, which comes with new unlockable course customisations.
Luigi Cup also adds three new tracks called Windmill Meadows, Music Broadway and King Boo’s Courtyard. By placing high enough, players will unlock Luigi’s Poltergust kart.
Mario Kart Live’s last major update was in July, where its version 1.1.0 patch added a new Mario Cup to the Grand Prix mode, with three new courses and a new Super Yoshi kart.
Mario Kart Live is an augmented reality game that has players controlling a toy kart with their Nintendo Switch.
At launch it featured 24 different courses across eight Grands Prix. The courses add different environmental themes, such as underwater, volcanic and retro, which introduce a variety of in-game hazards and features which affect the kart in real life.
In our Mario Kart Live review last year, we said: “Nintendo‘s toys-to-like experiment can feel like magic, but also requires a sizable living space to work effectively.”