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Panic Bomber is a falling block puzzle game, somewhat reminiscent of Puyo Puyo games: instead of Tetris-like abstract blocks, little colored heads are falling down and must be arranged in rows of three (vertically or horizontally), by rotating them and matching them with other heads of the same color. In this case, the heads clearly belong to the titular character of the Bomberman series.

The game has similar gameplay and opponents as in the handheld version; Bomberman automatically advances on a "world map", defeating opponents in falling block contests in a linear fashion. However, this is only one part of the game, the story mode. Two additional modes are: a versus mode, which allows multiplayer gameplay of up to five players, and a timed challenge mode. In the latter, the player has to complete specific falling block-related tasks before the time runs out.