Players can play as either Iron Man or War Machine, each with their own unique style. While Iron Man is sleeker and relies much more on energy weapons, War Machine is outfitted with ballistic weaponry and tougher armor. Iron Man can choose from multiple suits of armour, including Marks II through VI. Players can customize upgrades and weaponry on the armor. Weapons can also be switched during gameplay. Flight control has been improved upon since the first game, as has melee combat, allowing players to get near to the ground. AI was also updated from the previous title. New enemies have been included, and new strategies are now available in combat.[10][11]
In the Wii/PlayStation Portable version, simplified graphics, different combat systems (not using melee during midair) and different missions are added. Flying across levels was removed, instead letting Iron Man hover or walk across the level. The point of view was also changed. Also included are "Tech Trophies", collectibles which can be used as upgrades, while "Ammo Cases" are used to supply ammunition.