The story of Foxy is rather basic: a hostile army from a country known simply as "Red" attacks the capital city of the "Blue" nation. Not only the enemy tries to invade the most important strategic points of the city - enemy generals also try to capture and enslave the "Blue" girls! Naturally, they must be stopped! As the commander of the Blue army, it's the player's task to face enemy forces in battles, rescue the girls, and drive the Reds out of the city.

Foxy is a pure strategy game, without any RPG elements. The player is taken from one battle to another; there is no gameplay outside of battles. The battles take place in various city districts. The player navigates his/her units in turn-based fashion. In the beginning, the battles are relatively small-scale, with infantry and tank units; as the game progresses, more unit types are introduced, including massive rocket-launching tanks, jet planes, catapults, etc.

Each unit has distinct advantages and disadvantages, different mobility, attack range, etc. For example, infantry units that carry rocket launchers can only attack diagonally, but cannot be hurt when they attack tanks from that position; being attacked frontally, however, makes them very vulnerable. Terrain also plays a role; certain terrain types may slow down certain unit types, or be completely impassable to others. Each next battle features more complex layouts and larger amounts of units.

Between the battles there are cut-scenes, most of which are dedicated to rescuing the girls, and feature nudity and mild sexual situations.

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