Deadpool wants to be the main protagonist of the game developed by High Moon Studios and in order to make them develop the game, he plants explosives in the studio. Deadpool even hires Nolan North to voice the protagonist. After Deadpool receives the scenario from the studio, he finds it boring and edits it with a pencil. The game continues according to the edited scenario after this point.

It is a combination of action, hack & slash and a third-person shooter, where new hit combos are unlocked further into the game. In order to get new combos, the players have to kill a certain amount of enemies. The main feature of the game is the breaking of the fourth wall by Deadpool. The protagonist often talks to the player directly, shares his opinion on the player's performance and reveals parts of the plot. The combat gameplay revolves around combining both melee and ranged attacks. The player can change Deadpool's equipment on-the-go. Deadpool has the same regenerative powers as Wolverine and will get blown up into pieces on some plot occasions.