Bandais follow-up to its 2002 game on PlayStation offers PS2 owners four-player action and a total of 49 characters from the first four seasons of the Digimon television series. Single-player fighting involves advancing through a series of 3D opponents and high-powered boss encounters, while multiplayer competition has up to four players competing simultaneously on the same screen. As in the original game, the battle arenas offer distinct hazards and obstacles to avoid while challenging rivals.

The goal is to earn as many Digi-points as possible by using special moves and combo attacks on opponents. These points help evolve the digital monster into a new, more powerful version. Conversely, players on the receiving end of attacks will lose points, which in turn causes the Digimon to de-evolve into a lesser entity. The action takes place amidst sunny meadows, underground caverns, futuristic spaceports, and more as players attempt to unlock secret Digimon while improving their own.