The game is divided up into rounds. Most rounds are divided into air combat (shooting from one to three airplanes in formation) and ground combat (two zeppelins and multiple ground targets). While the game does not feature accurate flight physics (the plane cannot be crashed directly into the ground, for instance), the vector-rendered mountain ranges serve as solid objects and flying into or through them causes the player to crash and lose one life. The mountain ranges do not impede attacks, either from the player or the enemies, and can be shot through. Enemies include: formations of enemy biplanes, zeppelins, pillboxes, turrets, and enemy buildings.
Red Baron adjusts its own game difficulty by maintaining a consistent average game time from the last 32 games played. The NVRAM stores top three scores as well as average game times. In other words, this game has "adaptive difficulty". The goal of this feature was to adapt to the skill level of the typical player at that location and prevent excessive game times.
The upright versions of Battlezone (1980) and Red Baron share the same cabinet. In Battlezone, the player looks through a window that was shaped like a tank periscope. Side-view windows were available on both sides for people not playing the game to watch the action. Battlezone utilizes a two-way mirror to superimpose the monitor display (mounted horizontally) on a tank "interior" background. Although Red Baron uses the same cabinet as Battlezone, no mirror is used and the monitor is mounted vertically, with the player viewing the display directly.
Battlezone and Red Baron both used the same "Analog Vector Generator" (AVG) circuit boards and by switching the PROM's they could be interchanged (with very minor jumper additions). Red Baron and Battlezone use different auxiliary boards which are not interchangeable.