
In 2006, Cinemaware Marquee re-released the game as Space Rangers 2: Rise of the Dominators, as part of the publisher's strategy to import lesser known games from Europe, and to utilize the low cost of digital distributors such as Direct2Drive. Australian distributor Red Ant Enterprises released a CD-ROM version ( Space Rangers 2 only) in 2005. In June 2005, Excalibur Publishing released a DVD version that included both Space Rangers 2 and its prequel, Space Rangers.

Space Rangers 2 was originally published in Russia by 1C Company in November 2004. Katauri continued to support the game well after its release, later developing an HD version of the game for release in 2012.

The Elemental Games team had a conflict with management in 2004, with several members forming a new company called Katauri Interactive. Space Rangers 2 was developed by Elemental Games in Vladivostok, with a team of 15 developers working for around a year and a half. It is also possible to earn wealth through piracy and looting, which risks damaging relations with other aliens and planets, eventually provoking attacks on sight. Players can also earn wealth through a trading system, with the markets for goods changing dynamically due to supply and demand. The player can perform these missions to earn wealth, to buy bigger ships, improved weapons and equipment, or even maps that unlock new sectors of the galaxy. The planet encounters can initiate several types of missions, such as hunting pirates, delivering contraband goods, or performing a covert operation against another alien race. Players can also survey planets for valuables by launching probes, with some planets triggering text-based quests similar to text adventure games. The player can also pursue enemies into space, playing an arcade-style shooter mode, where players use the keyboard to maneuver and fire in an action sequence. The game also includes a 3D real-time strategy engine for planetary battles, where the player can take control of any unit to shift gameplay to that of a third-person shooter. Space travel is seen from a top-down viewpoint, with movement utilizing a turn-based system measured in solar days. The player begins by selecting an alien race and a profession, and is dropped into a dynamic open universe to explore.

The game's multiple systems are compared to other multi-genre games such as Pirates! or Star Control II. The Dominators are much more powerful than the player at the start of the game, forcing the player to evade them, while pursuing smaller jobs to gain wealth, equipment, and experience.

The main goal of the game is to defeat the three command units of the titular Dominators, thought the game allows the player to ignore the main quest in favor of exploration, trade, and other sidequests. This leads to a universe with hundreds of planets, each with their own economy, government, and opinion of the player. Players explore a randomly generated galaxy, with each sector featuring multiple stars and planets. Space Rangers 2 is a hybrid game with multiple game types of gameplay. The player begins the game as a trainee member of the Space Rangers – a corps of pilots charged with defending the galaxy from the Dominators. There are three Dominator types, each at war with each other: the Blazeroids, the Kelleroids, and the Terronoids. Sentient combat robots known as Dominators are attacking the five civilizations of the Coalition: the humans, the Maloqs, the Pelengs, the Faeyans, and the Gaalians.
