Dig Dug for the Atari 5200 is an arcade-style action game where players control a character named Dig Dug to eliminate underground monsters by inflating them with an air pump or crushing them with rocks. Players navigate through layers of earth, creating tunnels while avoiding or defeating two types of enemies: Pookas (round, red monsters with goggles) and Fygars (green dragons that breathe fire). The objective is to clear each stage by defeating all the enemies. As the levels progress, the difficulty increases, offering a blend of strategic digging and fast-paced action.