Lost Planet 3 will feature four team-based multiplayer modes: Once again, the antagonists of the game will be the Akrid, aliens indigenous to the planet of E.D.N. The game will allow players to openly explore areas in a style similar to role-playing games with the ability to talk to non-player character, obtain side-quests, upgrade equipment and build their own bipedal rigs using items gathered throughout the campaign. Using the game's mission-based mechanics, players can choose to take on core quests that progress the story, or side-quests to help out fellow colonists on the planet. The game's gameplay will be more similar to the first game with a story-driven adventure rather than the second game which replaced the story-driven narrative with a simple co-op and grind-heavy campaign.

Though as the story progresses Jim begins to unravel the dark secrets of NEVEC. However, in the game NEVEC has not yet become an antagonist and instead is helping make the planet habitable to humans by constructing thermal posts on the planet to combat the harsh icy weather conditions. III having defeated the Akrid and only being left with defeating the Snow Pirates who were rebelling against their governance.

In the first game, NEVEC had become a dictatorial force on E.D.N. Unlike VS mechs, Rigs aren't militarised with weapons and instead are equipped with drill arms and claw arms for mining. The game, however, doesn't feature militarised VS bipedal mechs like previous entries in the series, and instead features mechs called Rig that are the predecessors of VS mechs, given the timeline of the game. The game follows the story of Jim Peyton, a colonist who is working for NEVEC and helping mine the planet and sending minerals back to Earth, where his family awaits him. III sent there by the Neo-Venus Construction company or NEVEC, who later become the main antagonists for the series. It takes place during the time of the first few human colonists on E.D.N. III is still in an ice-age like environment rather than the tropical environment of the second game that occurs after the events of the first game. The game takes place long before the events of the first game, and hence the planet of E.D.N.

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