The third and final title in the Colony Wars trilogy, this game's plot departs from the ever-going struggle between the League of Free Worlds and the Colonial Navy, instead of having them at peace, the two are engaged in war once more. The player is immediately presented that the final battle between the two was beginning. During the intro, the player is shown the Red Sun, a neutral starship destined for the stars on its maiden voyage, and is the center of the plot concerning the game.
Instead of the League vs. Navy approach with the player automatically being on a side, the player plays as Valdemar, an out-of-work mercenary who has been called to save the galaxy by a man who calls himself "The General." Expectedly, Valdemar has no choice but to accept the General's wishes.
The game further diverts from the previous 2 games' style by including a shop system, where the player must buy weapons and aircraft in order to upgrade. In certain missions, upgrading is not required as the game will give you ships central to the plot (as in, those used in the numerous FMV cutscenes), even though you can switch to a ship that is outside of the plot.
The player, instead of being restricted to a set armament per ship, is able to create their own weapon setup. While 99 missiles can be loaded into one 'slot', 99 lasers cannot be fitted into one slot in the same manner. Every laser takes up 1 slot, and you cannot own more than 3 of one kind of laser. This game is also notable for nearly nullifying the importance of the Anti-Shield and Anti-Hull weaponry.
The number of ships has nearly doubled from the previous game, and the player is able to pilot an enemy fighter. 9 ships in total, each ship's stats gradually increase as the player upgrades from ship to ship. None of the ships' individual stats are upgradable, meaning to get more thrust, you would have to upgrade ships entirely.