Overview

• Power Meter: In Streets of Rage 2, using special moves drains the player's life.  While that is still true in Streets of Rage 3, the player can use special moves without the health penalty by waiting until the power meter flashes "OK."  Once a special move was performed, the meter would reset, and fill back up over time.  This allows for more frequent use of special abilities.  However, the player will dole out less damage, and take more in return, when the meter is below full.
• Dash Moves:  The dash move added some defensive possibilities, as characters cannot block attacks in Streets of Rage.  The new dash moves gave the player the opportunity to strike, and get out of the way before counterattacked.
• Weapon Health: Weapons could only be used for a limited time before they would break, which was new to the series.  In Dr. Zan's case, weapons instantly turned into plasma balls when picked up.  Zan would then throw the plasma ball at enemies.  The type of weapon picked up determined how many plasma balls Zan could throw before running out.
• Weapon Special Moves: Some weapons had special moves.  For instance, by dashing and attacking with a sword, Axl would perform a rising uppercut with the weapon.

Characters

• Axl Stone:  The headband sporting Axl returns, almost unchanged from Streets of Rage 2.  He is one of the stronger characters, though he moves slower in comparison to the other selectable characters.  His special moves include a spining fire punch, and a punch flurry that ends with a jumping uppercut.
• Blaze Fielding:  Keeping her miniskirt and hooker boots, Blaze is also identical to Streets of Rage 2.  She's a solid all-around fighter with good speed and decent damage.  Her special moves are a backflip kick and fireball.
• Eddie Hunter, aka "Skate":  Skate also makes a comeback from Streets of Rage 2.  His moves are similar, and still very fast, but his drill kick has been replaced with a rolling flurry of punches, which are very hard to land.  His spin kick super hasn't changed, however.
• Dr. Zan:  Zan replaces Max this time around, and is heavily involved in the overall plot.  As a large cyborg, Zan has terrific range, but is slow.  For his special moves, Zan can generate an electric field all over his body, or throw a long-range electric punch.
• (Hidden) Shiva:  Shiva was Mr. X's personal bodyguard in Streets of Rage 2, and one of the bosses in Streets of Rage 3.  After he's beaten, holding the B button until the next stage unlocks him.  Once the player loses all lives and continues, Shiva will show up as a playable character.  His moveset is a bit limited compared to the other characters, but he's very fast and has good reach.  While his special move is extremely powerful, it is very difficult to land.
• (Hidden) Roo:  Roo was also another Streets of Rage 2 character.  If the player kills Roo's handler, without killing Roo, the kangaroo will escape off of the screen and players can select Roo when they next continue.  Alternatively, Roo can be unlocked immediately by holding Up B and pressing Start at the title screen.  Roo has a full set of moves, including spinning punches and team-up attacks.  He appears on the box art to the game, as well.
• (Hidden - Japan Only) Ash:  The gay biker was not included as a playable character outside of Japan.  After defeating him, he can be unlocked by holding A until the next stage begins.  He'll show up as a selectable character when the player uses a continue.  Like Shiva, his moveset is limited, and he has very little range, though his attacks are powerful.  His best offense is to use grabbing/throwing moves.