In keeping with American's distinct development style on his smash hit game American McGee's Alice, fans can expect the same twisted treatment of children's classics, in addition to a fantastical art style, and groundbreaking gameplay elements. American McGee's Grimm is a narrative-driven, action-adventure game which immerses the player in a world built around some of the best known tales from the Brothers Grimm, including Rapunzel, Rumplestiltskin, Little Red Riding Hood, and Snow White.

American McGee's Grimm is a story-driven action-adventure game. The player interacts with a compelling collection of vividly drawn characters inhabiting a world built around twisted takes on the best-known tales in Western fiction. The game combines familiar exploration and questing conventions with a thematically inspired fighting mechanic based on the notion that "words are weapons".

Players will experience the game in a sandbox world which contains missions assigned in episodic fashion. Game and narrative concepts equivalent to TV cliffhangers will be used to create game play and story interest to encourage players to keep up with new releases.