Yakuza is a third-person action-adventure video game with role-playing elements, set in an open world environment. The player gains experience from combat, which can be used to level up Kazuma's stats and increase his fighting capabilities.
The game is composed of three distinct yet connected modes called Event, Adventure and Battle. The player controls former yakuza Kazuma Kiryu from a third person camera perspective, through a city full of missions and side quests. The main character randomly encounters foes on his path, in Encounter Battles. Winning the battle nets the player some cash, which can be used to purchase equipment or healing items, and experience, which can be used to buff Kazuma's stats. Sometimes, defeating the leader of an Encounter Battle will end the fight, even if some henchmen remain. Yakuza utilizes quick time events during the fights.
The Battle Mode includes the Underground Arena (地下闘技場) which is located in Kamurocho's Purgatory area. Cutscenes are enabled after completing specific actions or beating a certain character during the Adventure Mode. They also introduce the chapter's objectives. Various minigames are available within 'Adventure Mode' in the form of arcade machines scattered throughout the game world. These include a claw crane, a batting cage, a casino (baccarat, blackjack and roulette), toba and pachislot.