Gameplay in the game is similar to the Devil May Cry series, but easier for younger and less experienced players. Both titles were developed by Capcom. Jack can transform into Santa Jack and the Pumpkin King later in the game. Santa Jack can lay down three types of presents to thwart his enemies, while the Pumpkin King form can set them aflame or lay down a bomb. The game consists of 24 chapters (and two secret chapters). Players must fight numerous enemies, perform platforming tasks, and occasionally solve puzzles to progress through the story. The player's performance in each mission is given a letter grade of A, B, C or D, with an additional top grade of S. Grades are based on the time taken to complete the mission, the longest combo performed, the damage done to Jack, and the number of enemies surprised.
The doors of the various holiday worlds are obtained when a certain level is completed, though they are simply plot items and do not grant the player access to other holiday-themed towns. Later chapters, however, allow the player to enter Christmas Town. Each of Jack's costumes have different abilities. Santa Jack (which is obtained once Doctor Finklestein is defeated) can throw out presents to stun enemies or freeze enemies in ice, and the Pumpkin King (obtained after saving Sally from a large spider) can burn enemies and open doors by burning them. There are several unlockable costumes, though they do not grant any additional abilities.