Two years after the events of the Battle of Seitoku Zero (and shortly after the events of Tokyo Xtreme Racer: Drift 2), news of the Thirteen Demons' defeat has spread across Japan. Tokyo is in chaos, with Osaka and Nagoya vying for supremacy. The racers must defeat teams from all three cities to face the best teams and racers from each city: Speed King and Digitized Angel from Tokyo;
The gameplay is identical to previous Tokyo Xtreme Racer games, with the player racing through Japanese nighttime tracks, challenging opponents to impromptu battles. At the start of a race, each car has an "SP" meter at the top, which shows its health. The SP meter of the lagging car gradually depletes, with the rate of depletion increasing the further they are from each other. The SP meter is also depleted by collisions with walls, vehicles, or other racers. The player can use their car's meter to tell their opponent the intended trajectory, after which they will try to catch up. If the two cars take different paths, the match ends in a draw.