Luftwaffe is an update of the classic Avalon Hill game covering the US strategic bombing campaign over Europe in World War II. As the US commander, your mission is to eliminate key German industrial complexes. You select the targets, direct the bombers, and plan a strategy intended to keep the Luftwaffe off-balance. As the German commander, the entire arsenal of German aircraft is at your disposal against the finest in Allied designs. Turns are quarterly, with German reinforcements keyed to that player's production choices. Units are wings and squadrons, and they're rated by type, sub-type, firepower, maneuverability and endurance. There are rules for radar, electronic warfare, variable production strategies, aces, target complexes, critical industries and diversion of forces to support the ground war. Beyond that, the original, classic game system remains essentially sound and hasn't otherwise been changed much. Most of the upgrade was in adding in additional rules, revising the order of battle, and adding more deployment and industrial options.

The reverse side of the units now represents a condition of loss of effectiveness, rather than loss of material strength. That's due to a combination of factors: damage to aircraft, an infusion of novice pilots, or to veteran crews suffering combat fatigue. Historically, pilot training and morale were critical factors, and the game now shows that. Replacement points represent not only new aircraft but also logistical support, rest and relaxation time for aircrews, all of which are used to restore fatigued units to good morale. Fatigued units count the same as veterans for stacking on the assumption that a shot up or novice unit would be more difficult to coordinate in the air.