Bloody Good Time is a multiplayer first person shooter taking place on a Hollywood movie set. The crazy Director X is casting for a new movie and has invited eight aspiring actors to his studio. The player takes control of one of these actors and has to perform well enough to earn the leading role. Soon he will find out that the director's unusual casting methods are not just about getting the role but to stay alive.
The gameplay is similar to Outerlight's previous game, The Ship. A game consists of a number of scenes. There are four main types of scenes (game modes) and four types of bonus scenes. In most of these scenes, each player has a quarry that he has to hunt down and kill. Of course, at the same time he has to watch out for his own hunter. Normally the identity of the hunter is not known so the player has to pay attention to what the other players are doing. By performing well the player earns fame and the one with most fame at the end wins the game.
Before the killing can begin the player needs to pick up some equipment. There are two kinds of items in Bloody Good Time: weapons and murder aids. Weapons range from melee weapons such as axes and frying pans to ranged weapons such as stun guns and flamethrowers. Each weapon has a star rating which represents how much fame the player will get for using it to kill his quarry. Murder aids can be used to enhance the player's abilities or decrease those of the opponents. Another way to kill the quarry is to activate one of the many traps that the director has set up around the sets.
The player has three needs that has to be dealt with. These are fatigue, relief and hunger. When the fatigue is low the player become slower and has to find something to rest in. A low relief leads to less damage resistance until the player finds a toilet. The player also has to eat or he will lose his strength. Whenever the player is doing his needs his hunter can do an insta-kill with no chance of defence. The player also has to watch out for security cameras and guards. If they see any crimes being committed they will start chasing and fine any culprit they might catch. The crimes that can be committed are possession of a weapon, theft, murder and escaping security.