Wipeout 2 is a game based on the "game show" of the same name on major television network ABC in the United States. In it, the game is organized as if players are taking place in numerous events over the course of an "episode," as if it's part of a television episode. Each event is preceded with an introduction by in-game characters of the hosts of the show (John Henderson and John Anderson), and just before beginning the event, a mock interview with hostess Jill Wagner.

Events are organized in four rounds as such: A Qualifier round, an Elimination Round, a Final Four round, and the final Wipeout Zone. Some rounds are played with players taking turns, and some are played simultaneously (when in two-player mode). Players are simply competing to complete the ridiculously set-up stages with the fastest times. Episodes are split into Summer or Winter events, and there are four episodes per season. Players will dodge giant hammers, bounce on the iconic giant balls, dodge swinging or turning beams, manage balancing acts, and other events.

The main draw of the game is it's focus on motion controls, especially with the Xbox 360, Playstation 3, and Wii versions, using Kinect, Move, and the Wii Remote respectively. The Xbox 360 version also features different character models than the other retail versions as they are designed around the style of Xbox 360 Avatars, and players are able to use their own Avatar in-game, as well as snapshots taken during gameplay.

The game also features replays, a Practice mode, and a behind-the-scenes video.