Dance Factory is a rhythm action game that focuses on using a dance mat to complete a dance pattern in time with music. The goal is to get as many arrows in the right order and at the right time to achieve a high score. One of its unique features is that it will create a dance pattern based on any music CD inserted into the PlayStation 2 console.
Dance Factory has six different single-player game modes, all variations of the main game mechanic where players match patterns moving up the screen with button presses or foot taps in time with music. These modes include basic gameplay, endurance mode which plays through an entire CD's worth of songs, fitness mode that counts calories, and record mode to create your own dance. There is also a 'creature' mode with computer animated characters dancing along, and EyeToy mode where players must hit on-screen camera image icons in time.