Magic Ball 3 is an object-breaking arcade game which is similar to the classic Breakout game. It has an interface with colorful 3D graphics and sound effects. A player must move the paddle left or right to keep a bouncing ball from hitting the bottom of the screen and direct the ball towards the enemies to eliminate them upon impact. It uses a physics engine that makes the gameplay more fluid and challenging.
The game includes four different themes with a new set of background music. It has four levels, and each level comprises 20 sub-levels. The first level is a pirate-themed adventure. Players must hit pirates, sailing ships, pink octopi, and other ocean-related objects. The second level is more of a Zoo or Jungle theme. Players must hit gorillas, sheep, fences, and more. The third level has a Wild West theme. Players must hit cowboys, hay bales, horse-drawn wagons, and so on. The last level has a medieval theme. Players must hit castle walls, turrets, knights, and similar objects.
Hitting an object or an enemy may give a player power-ups. Power-ups may give an immediate positive or negative outcome. It includes power-ups such as laser cannons, yo-yo balls, and more.