Bat Cage is an action game where the player has to capture bats while fighting off other bats that try to rescue them. The playing field consists of a bat cage in the bottom and above it a bat flap around and there are also eight bat eggs bouncing around. The player controls a bar that can be moved around freely. It is used to capture the bat eggs which are taken to the bat cage where they can hatch. As soon as the hatching begins the bat at the top of the screen will attack and try to rescue the egg. The player then has to use the bar to fend it off. It works a bit similar to Breakout as the bat will bounce back up again when it makes contact with the bar. The player then scores points as long as the egg hatches. Ultimately the attacking bat will give up and retreat and the player can move on to the next egg that needs to be captured.

As the game goes on the player will reach bonus levels and the number of attacking bats will increase. The game is over when the bats stay at the top of the screen and no longer attack when the player hatches his eggs. The game can be set to different skill levels (1-36) that alters the speed of the game.