Extreme-G 2 is the second Extreme-G game to be released on the Nintendo 64. This ineration is about futuristic racing: pilots race plasma-powered bikes in an intergalactic Grand Prix at speeds that are over 999 mph. It is possible to break the sound barrier in this game, creating a sonic boom. While travelling at supersonic speeds, all game sounds are muted and all that can be heard is the sound of the vehicle travelling. If the bike slows down to below supersonic speeds, another sonic boom can be heard and all game sounds will resume. The emphasis is on speed and creative racetrack design, with tracks looping through all three dimensions like roller coasters.

Each of the machines have their own handling characteristics, with varying top speeds, armor values and traction values. All of the machines in the game have an energy meter – this energy powers not only the machine's protective shields, but also a boost which can provide a burst of speed. If a machine loses all of its energy, it will explode on contact, causing the player to lose a life or the match. It is also possible for players to fall off the tracks, which are suspended several miles up in the air.