Virtua Fighter is set one year after the first tournament, where a group of fighters are invited to the World Fighting Tournament. They include Akira, Wolf, Pai, Jeffry, Kage, Jacky, Sarah, and defending champion Lau, as well as new additions Shun-di and Lion Rafale.
The gameplay is similar to the first game, with each fighter having their unique style. The player can control their fighter using a three-key layout, aiming to knock or push the opponent outside the ring within the time limit. Combo moves range from simple to complex, requiring various button combinations and d-pad nudges. Fighting is realistic, but with some exceptions in terms of physics.
Although the graphical quality took a hit compared to the arcade version, the game makes use of the Saturn's High-Resolution mode and 60-fps frame rate to bring an immersive experience home. Game modes include classic arcade mode, 2P vs mode, Expert mode, Ranking Mode, Team Battle Mode, and Watch mode, with both Virtua Fighter 1 and 2 versions included.