Backstage Assault is vastly different from other games of its genre. Previous wrestling games such as WWF SmackDown! and WCW Mayhem featured backstage areas as auxiliary fighting locations. In Backstage Assault, all of the gameplay takes place in backstage locations. There is no ring, and it is not possible to go into the main arena in front of the crowd.
All of the matches are conducted under "Hardcore Rules". As in traditional wrestling, one person can win by pinfall (holding the back of the opponent's shoulders to the ground while the referee counts to three), submission, or knock out. But these win conditions may be met anywhere, and the use of objects as weapons is encouraged. It is not possible to end a match by disqualification or count out. As gameplay is limited to only two characters, all matches are one-vs-one with no possibility of outside interference or teamwork.
The game takes place in an arena with seven connecting levels, having sixteen rooms in total. While a match may begin in one room, it can end anywhere the players can gain access to. When beginning 'Hardcore Challenge' or 'Hardcore Gauntlet' mode, they are confined to the Truck Arena for the first match. The player may return to rooms they had already visited as they progress through the modes. They do this by walking through open doors. Winning matches in these levels makes them permanently available in Exhibition mode.