Drops can be picked up and dropped by the player's character, which is placed at the bottom of the screen, and they disappear when three or more of the same color are put together on a single column. Gameplay is similar to the first entry albeit with improvements the objective is to clear the screen from a stack of constantly advancing colored 'drops' that descend from the top of the playfield. Like its predecessor, Magical Drop II is a puzzle game where the player takes control of one of several characters named after a tarot card, battling against computer-controlled opponents before facing the villainous Empress in a final encounter. It was followed by Magical Drop III (1997).

The title has since been re-released on compilations and through download services for various consoles. The game proved popular among players but both the original arcade release and console versions garnered average reception from critics, some of which reviewed it as an import title.

Iwao Horita and Naomi Susa acted as co-supervisors, with Shungo Katagiri serving as the game's sole planner, while the soundtrack was scored by Gamadelic. Prior to Magical Drop II, Data East had previously developed a number of Neo Geo titles such as titles such as Spinmaster, Windjammers, Street Slam, and Karnov's Revenge. Two players can also participate in a competitive versus mode. Gameplay is similar to its predecessor Magical Drop (1995) albeit with improvements the objective is to clear the screen of constantly advancing colored 'drops' via a character placed at the bottom of the playfield, which can grab drops and make them disappear by putting them as a column of three or more drops of the same color. In the game, the player takes control of one of several characters, battling against computer-controlled opponents before facing the villainous Empress in a final encounter. It is the second entry in the Magical Drop series. It was later ported to Neo Geo CD, Super Famicom, and Sega Saturn. Magical Drop II is a 1996 puzzle video game developed and published by Data East for the Neo Geo arcade and home platforms.

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