Dancing Stage Unleashed 2 now features a wider range of Xbox Live modes. Via the online system, players can download new tracks, characters and challenge modes, and can also swap specially choreographed dance routines with like-minded fans. There is also an all-new Tournament function wherein up to 8/16 users can participate in online dance-offs, with the greatest movers making it to a centrally housed Hall of Fame. Also, players can now play against dancing fans in the US, as well as their European counterparts.

Dancing Stage Unleashed 2 includes more than three dozen songs, of which 14 are licensed tracks, each of which is accompanied by its relevant promo video. The tracks in the new game span a range of decades and include Wheres your head at by Basement Jaxx and Girls Alouds Love Machine to cater for pop fans, while the likes of the classic Step On by the Happy Mondays and Alright by Supergrass offer a slice of the indie scene. A couple of true dance classics are also included in the shape of Donna Summers Hot Stuff and A Town Called Malice by The Jam.