Goo! Goo! Soundy loaded its software onto the RAM of the console, allowing the player to insert their own music CDs and use any song they like for the game. The player could also choose an avatar to dance in the background, who eventually learns new moves and transformations.
The game could be played with either a Playstation controller or a dancemat by pressing the corresponding buttons as the arrows rose to the top of the screen. Scores of Perfect, Good, Bad and Miss are possible for each step depending on the timing and a combo counter runs throughout songs to keep track of consecutive hits, as well as keeping record of the player's highest recorded max combo.