Power Stone 2 is a multiplayer fighting game that built on the innovative gameplay introduced by its predecessor, Power Stone. Power Stone 2 allows up to four players to choose from multiple characters and utilize items such as tables, chairs, and rocks in battle.

Power Stone 2 originated as an arcade game, like many others on the Dreamcast. The Dreamcast served as a testing ground for successful arcade games. Power Stone 2 included some differences from the original, including new character voices, the removal of the existing combo system and a new, horizontal status bar.