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The lead Mega Drive programmer of the game, Carl-Henrik Skårstedt has stated that the game took about a year to develop, but he didn't start until the game was six months into development. The game had a limited print run in this territory and when up for sale, usually commands a very high asking price. The Sega Mega Drive PAL version of the game was only released in Australia along with Ecco Jr. In a break between platform levels, at several points in the game, Santa flies in his sleigh and uses the presents he collects to drop them down chimneys in several locations around the world. His primary method of attack is swinging his sack of toys at enemies. As Anti-Claus, Santa is invincible, but unable to use his magic or collect gifts.

By drinking a cup of coffee, Santa transforms into a blue-suited, devilish looking version of himself. The game's most remarkable feature is Santa's ability to turn into his evil twin, "Anti-Claus". He can collect more hats to replenish lost energy. Santa's energy level is represented by Santa hats, which represent how many hits he can take before losing a life. These presents may contain enemies, power-ups or bombs. Santa's magic can also be used to open the Christmas presents scattered around the levels. He can also collect a power-up that makes him shoot flames which melt ice.

Santa faces foes such as giant rats, evil toys and living snowmen using his magic powers to turn them all into harmless Christmas presents. The player controls Santa Claus as he races to save Christmas from an evil snowman who has imprisoned Santa's elves and captured Santa's reindeer.