After meeting Elder Kai, they are granted their first mission, which is to correct Goku's battle with Raditz after he's been enhanced by dark magic. They meet the Supreme Kai of Time, a deity who watches over time, and her bird, TokiToki. Two years after the events of Dragon Ball Xenoverse, the protagonist receives a mission from Elder Kai, which involves correcting history after it has changed. Players may also select a premade avatar to serve as the 'Hero' if they choose not to transfer save data. This results in the player's custom character from the previous game appearing as Toki Toki City's 'Hero' in the middle of the square. Additionally, players are able to transfer their save data from Dragon Ball Xenoverse. The player can use different kinds of ki blasts (Power, Homing, Rush, Paralyze and Bomb), and the ki blast type depends on the player's race or Super Soul. The game also has a training mode called Training School.

Multiplayer servers are now able to hold up to 3000 players at once. Players also have a much greater role in the story, as their choices can affect how the story unfolds. The game also features race-specific quests, minigames, and transformations (the latter of which was available only to Saiyans in the first game, via the Super Saiyan forms). Xenoverse 2 is the fourth Dragon Ball video game to feature character customization, and allows players to choose from five races: Humans, Saiyans, Majins, Namekians and Frieza's race, each with different strengths and weaknesses. Some skills will have to be learned through masters, like the previous game, some of whom are found exclusively in these extra hubs. Players are also able to travel to other hubs such as the Namekian Village and Frieza's ship. Players are able to freely traverse the hub world, and in some areas are capable of flying, once they have unlocked the ability to fly.

As reported by the creators of the game, Conton City is seven times larger than Toki-Toki City. It is primarily set in 3D battle arenas modeled after notable locations in the Dragon Ball universe, with the central hub being an expanded version of Toki-Toki City, known as Conton City. The game is very similar to its predecessor in terms of gameplay.

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