With police pursuits reintegrated into the game, Hot Pursuit's gameplay now consists of two categories. The first encompasses standard racing, as it has been in its predecessors, The Need for Speed and Need for Speed II, in which the player is allowed to race against one (including split-screen races) or seven other racers in normal circuit racers, knockouts, or tournaments (which allow the player to unlock bonus vehicles and a bonus track). The second category is dubbed "Hot Pursuit", where police pursuits are included in races; the mode allows the player to select a standard sports car to race against a single opponent in a police-scattered track. The PC version also contains a role reversal variation in which players select a police version of a sports car to pursue and stop all six racers before they complete the race. Completing the Hot Pursuit challenges in both roles in the PC version on every track of the game unlocks additional police sports cars.
Two modes were introduced in the game. The two-player split-screen mode allows two players to race using the same computer. The "Knockout" mode consists of seven races with eight racers on randomly chosen tracks, in which conditions such as selected difficulty, weather, and so on that the player has chosen before starting the race-series will apply. Each race consists of two laps where the driver who finishes last will be eliminated from the race lineup. All other drivers advance to the next round and carry on with the battle until there is only one player left, who technically wins the knockout competition. The standard "Tournament" mode consists of eight opponents in a four-lap race on randomly selected tracks and choices made by the player as in the knockout mode take effect when the tournament is started. The game supports network play through a serial port, modem, or IPX, and online gaming through TCP/IP protocol. It also allowed spawn installations of itself to be installed on other machines.
Racing tracks range from desert canyons to countryside villages, as well as snow-capped mountain ranges. Most tracks contain one or more secret shortcuts.
Car tuning was also introduced, which allowed any car's handling to be customized by adjusting low or high-end properties for engine tuning and gear ratios, front or back brake balance, slow or fast braking speed, soft or stiff suspension, low or high aerodynamics as well as rain or racing tires. Any of these options could be modified via sliders to offer a digit-sensitive, percentage-based effect to the selected car's overall performance. Higher-end engine and gear tuning, for example, will compromise acceleration for better top speed. Rear-based brake balance and slow braking speeds make for wider, drifting turns, and aerodynamics provide even higher speeds at the loss of handling.
