The premise in Cyberbots is similar to Armored Warriors, albeit it features only a maximum of two playable characters on screen as opposed to three. It features a range of selectable options, parts, and mecha that allow the player to tailor their play style to their preferences. Similar to the Armored Core series, different legs (which affect movement abilities), arms (which affect reach and melee capabilities), and weapons can be mixed and matched between the selectable robots available to the player. Gameplay in Cyberbots is similar to other Capcom-created fighting games, with a medium-sized command list of attacks available to each robot. Battles are a duel-format affair, with players and the computer fighting one another to advance to the next battle.

Set at the end of the 21st century, the game takes place in a world in which humanity has expanded beyond Earth and begun colonizing deep space. Earth Force, a military organization consisting of large mechs and their pilots, defends Earth’s interests and serves as the colonies’ primary line of defense. Players select one of six pilots and one of twelve mechs, then engage in 2D battles. Winning battles allows mechs to be upgraded and customized with new parts and weapons. The game’s story reveals further information about Earth Force and its experiments, while the actions of the selected character contribute to the outcome of Earth’s future.