Power Factor is an action-platformer starring the single campily-named hero, Redd Ace, fighting alien creatures known as the Ceegarians from the Ceeg dimension. Of course, aliens being played out, the Ceegarians are actually referred to as "transdimensional intruders," and the Ceegarian creatures the player faces off against are referred to as evil invading "Sinlendo Techmods."

The primary goal of the game is to work through stages and bosses essentially to build a bomb to destroy the Ceegarians. Pertaining to the bomb, there are six components. The entire game takes place within, as the box refers to it, "our dimension's reactor." As such, the environments of the game are aimed to look like the inside of a machine. To further convolute the storyline, the instruction manual actually refers to the game itself as a Virtual Reality simulation the player is experiencing in the future, based on the exploits of Redd Ace, and you’re meandering through this simulator on the “famous Atarian Leisure Moon.”