The game retains the win-lose scenario styling of its predecessor, only now the player controls a pilot, Mertens, who has enlisted in the Colonial Navy. Finally united and breaking out of the Sol system, the Navy has gained a new leader, Kron, who has motivated the descendants of the abandoned Sol System Navy to the point that the Navy begins active combat operations against the League. Like the first game, there are several endings, with Mertens directly involved in all of them. As the Navy is struggling from the very beginning to fight the greater League of Free Worlds, all but one of the endings chronicles their failure.
Another addition, that was never used in the next title in the Colony Wars series, was the ability to upgrade the abilities of one's ship. Completing one mission earned the player one tech point, which, when accumulated, could be used to upgrade thrust, shielding, afterburner, and the turning ability of the player's selected craft.
The game also includes five aircraft (Hex. Wraith, Diablo, Voodoo, and Spook), four of them being space-bound fighters, and the last one being a land mission-restricted craft. Each ship, like in the previous game, was accompanied by its own set of weapons, most of them often including Anti-Shield and Anti-Hull lasers.