This proves disadvantageous to the Rebels in the upcoming Battle of Endor. Emperor Palpatine reveals that the recent battles were manipulated, making the Rebels overconfident. This uncovers a ploy to wipe out part of the Alliance fleet over Dubrillion, and, in response, Rogue Squadron raids the shipyards of Fondor to destroy a Super Star Destroyer under construction. By making use of various pieces of deactivated Galactic Republic machinery left over from the Battle of Geonosis, he escapes and flees the system. Wedge fights with stormtroopers and battle droid remnants. Sarkli leads Rogue Squadron into Geonosis' orbit, where he and Wedge both crash following an ambush by TIE fighters and Imperial escort carriers. The Wedge Antilles campaign takes place after the Battle of Hoth, leading a raid on Bakura to extract rebel hostages from the orbiting prison. The Rebels settle on Hoth, but the Battle of Hoth forces them to leave as the Empire attacks and destroys their base. Despite this, Rogue Squadron and the scientists escape safely in a transport craft. During the battle to rescue the scientists, Rogue Squadron member Sarkli defects to the Empire. Tycho Celchu, an Imperial officer, defects to the Alliance on Dantooine and leads it to a group of scientists on Ralltiir who wish to defect. The Empire drives the Alliance off the moon, leaving the Alliance searching for a planet to serve as its next base.
The story is set shortly after the destruction of the Death Star above Yavin 4. In any Versus mode, players can pilot several craft, including X-Wings, A-Wings, TIE Fighters, and Darth Vader's TIE Advanced. Versus features a variety of modes, such as Dogfight and Survival. In Co-op, players share the same pool of lives.
Co-op allows players to replay missions from Rogue Squadron II: Rogue Leader in split-screen, excluding the levels Triumph of the Empire and Revenge on Yavin. The game also features two multiplayer modes: Co-op and Versus. The game also includes some unlockable classic missions inspired by the Star Wars original trilogy.
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It also contains on-foot missions in addition to the space battle missions found in the previous Rogue Squadron series games. In Rebel Strike the player controls several Star Wars vehicles such as the X-wing and AT-ST across missions that span the movies and moments outside the films. Star Wars Rogue Squadron III: Rebel Strike features gameplay in ground vehicles and on foot, a first for the series.