The game tells the story of Logan's background before joining the X-Men. The player witnesses Kayla's death on their last mission with Team X, escapes from Weapon Factory X, and helps Wolverine exact revenge on Victor Creed aka Sabretooth. The gameplay involves fighting dozens of enemies, including boss fights, where Wolverine uses his steel blades to slash through them, converting light and hard attacks into serious damage. The player can also incorporate the environment into enemy deaths by using the surroundings to inflict harm.
Hidden throughout the levels are Wolverine's old suits from the comics, which can be found by searching. Finding all of them unlocks bonus challenges and allows the player to use the corresponding suit in the normal game.