Real Bout changes the play controls from the previous Fatal Fury games, reducing the number of attack buttons from four to three: a standard Punch and Kick button, a "Strong Attack" button which can be either a stronger punch or kick attack, depending on the character. The game retains the three-plane "oversway" system from Fatal Fury 3, which features a main lane for fighting, with foreground and background planes used to avoid attacks or leap towards the opponent. A dedicated button is now used to make an "oversway" (or change plane) towards the background or foreground.

Real Bout introduces a Power Gauge, which fills up as the player performs normal or special techniques against their opponent or defend themselves, similar to many super move gauges featured in other fighting games. The Power Gauge allows players to perform one of three types of Special Techniques, depending of the level of the Power Gauge.

Real Bout also introduces stages with ring-outs, a gameplay feature previously introduced in 3D fighting games such as Virtua Fighter. If the player performs certain attacks on their opponent while next to the boundaries, the character will eventually destroy the barrier keeping the opponent in the ring and be able to knock them out of the stage for an easy win.

A translation of the story officially given by SNK is as follows:

With the fight for them over, the ruler Geese Howard has the Jin scrolls in his hands.

"Hehehe...this means that I have all three scrolls in my possession..." He promptly turns to the man with a bandana.

"Billy, dispose of them."

"Wha? For what reason, sir?"

"None of these scrolls will have any of the secrets I need. It's enough to be considered the strongest for obtaining these legendary scrolls. That's all. As long as I know that I am the first person to have collected these in its 2,000 years of history, I will never have a use for these."

"But still, even if you do not dispose them..."

"These scrolls have a different meaning with those Jin brothers. I don't want to understand what they're capable of in their hands."

"...Even the newly revived Geese has something that he fears then..."

"Do not misunderstand me. Even the Geese Howard resurrected from darkness doesn't want to repeat the same mistakes...Like with those foolish Bogards..."