This Natsume entry into the realm of extreme sports gaming puts the player in charge of a squad of highly-trained synchronized skydivers. As in reality, there is a short period between the time the diver leaves the plane and has to open his chute and the game's challenge comes in aligning the free-falling team members to form impressive formations before the time limit expires.

Players can lead their team in competition against a string of computer-controlled international contenders, or go head-to-head against a friend. Each squad can perform over 40 different formations and a practice mode allows the player to perfect his skills without the time limit.

In Skydiving Extreme you try to maneuver your team of skydivers into different formations in an odd mix of skydiving simulation and rhythm gameplay. You can practice your moves or compete against another player or computer.

When beginning a game, your chosen team of four skydivers will jump and then you have a limited time to complete more four-person formations than your opponent. Doing a correct formation will slow your descent, giving you more time to execute more tricks. To perform a formation correctly you must correctly enter the button sequence displayed on the screen within a short period of time. If you do this correctly your four skydivers will move into the formation. Formations are performed in sequence; if you miss one you must return to the beginning of the sequence and start over. You try to do as many tricks as possible before your team falls too low and they must pull their parachutes.

You can also "attack" your opponent - by performing tricks successfully you fill up your attack meter. When it is full you can execute an attack and force the other team to defend itself by performing a defensive formation. If the other team fails in its defense, it will fall at a higher rate of speed.