The player assumes the role of Scott Monroe, who finds himself in a armed kidnap while in a restaurant with his fiancée Miyu and Miyu's father. The target of the kidnap is Miyu's father, Isao Sato, a Godfather of one of the largest Yakuza families. Scott is able to protect the father from the kidnap, but his fiancée is kidnapped instead.
The story takes the player from Los Angeles to Tokyo, discovering the cruel Tokyo underworld. As the player, you have to use both firearms and traditional Katana swords to protect yourself and confront deadly gangsters.
Red Steel utilizes the motion-sensing Wii controllers in both sword-fighting and longer-ranged firearm combat. Using the mental powers Scott is able to unleash devastating attacks, and using the "focus system" he will be able to freeze time to hit multiple targets and execute combo moves. Master the Japanese art of fighting and take on your friends in split-screen multiplayer mode.