Xenon uses a top-down vertical-scrolling perspective. The objective is to guide the spacecraft through successive stages, destroy enemy formations, avoid hazards, and survive until each stage's end encounter.

The player moves in eight directions and fires continuously or whenever needed. Destroyed enemies can release power-ups that improve the ship's weaponry. Progress depends on learning enemy patterns, maintaining a safe position, and managing the limited space around the ship. The game is primarily a single-player arcade campaign.

Stay near the lower portion of the playfield, where incoming enemies and projectiles are easier to read. Move horizontally in short adjustments instead of crossing the screen unnecessarily.

Collect weapon power-ups when the route is safe, but do not chase a pickup into enemy fire. Learn the timing of recurring formations and keep firing while repositioning for the next wave.