Capsule Force uses a one-on-one or two-on-two competitive setup to pitch players against each other in a race to one side of the current level. The objective for each team is to reach the right-most or left-most screen of the stage (depending on which team they are on) and to collect the Capsule there to win. Each one of the eight stages in the game is made up of a number of separate screens with special platforms on them. When a character from the red team stands on a platform it will begin moving towards one side of the screen, while if a character from the blue team stands on it it will move towards the other. Should the platform hit the edge of the screen the focus of the level will move one screen over and this pattern will continue until the platform reaches the end of its track and the Capsule is accessible. Players may use their projectile weaponry to help them gain control of the platforms from the other team or keep them away from the Capsule, and in various areas must also dodge environmental hazards.
Capsule Force places an emphasis on chaotic visuals, with bright flashes and laser beams being a near constant element of play. In addition to the local multiplayer mode the game also includes 30 single-player challenge rooms.