In concept, Twisted Metal is a demolition derby which permits the usage of ballistic projectiles. Players choose a vehicle and an arena-or a series of arenas in the story mode-to engage in battle with opposing drivers. A variety of weapons and upgrades are obtainable by pick-ups scattered throughout the stage. The last driver alive is the winner.

A man named Calypso is the host of a vehicular combat tournament called Twisted Metal. He promises to grant the winner of the tournament one wish.