Unreal Championship 2 features 14 different characters from the Unreal universe, plus extra characters released in a bonus pack via Xbox Live. Other additions include the new gametypes Overdose and Nali Slaughter, new weapons including melee weapons, and more adrenaline combos than in previous games.
The game's use of third-person perspective when using a melee weapon affords the player greater control in combat.Unreal Championship 2 attempted to combine the genres of first-person shooter with third-person fighting games. To aid in this attempt at combined gameplay, the Thunder God Raiden from the popular fighting game series Mortal Kombat is available as a secret character.
Players can use melee weapons only in third-person mode, but can switch between first- and third-person mode on the fly while using firearms.
Before a multiplayer game starts, the host can change gravity, regenerate health, and otherwise modify gameplay with "mutators" as is common in the rest of the series. The game also features, in addition to the classic multiplayer, a single player system.