Unlike previous VR machines, which used helmets or wires to create a virtual world that only existed in the users' subconscious, Drake's machine was a massive room which functioned similar to a holodeck, meaning users entered the machine like they would any building.
According to statements made by Drake, the device could create at least 50,000 unique AI with different personalities and a city to house all of the programmers had the time to code all of them. It was capable of editing its scenario mid-simulation, and could construct identical copies of living individuals so long as the programmer had an image to work off of.
Soundwave was the admin program of the machine, and could monitor the other programs' actions and private messages.
Drake demonstrated the machine's capabilities via webcam to Dragonstorm representatives at New Peenemunde Harbor. At the same time, Hailey and Neku stormed the machine in an attempt to destroy it. Drake used three different pre-programmed settings in the ensuing battle
The first program was a recreation of Lewis Carroll's Wonderland. Hailey found herself in a forest, where she met the doormouse, Mad Hatter, and March Hare. When the three AI turned hostile, Neku dueled them, while Hailey advanced further into the machine and was attacked by the jabberwocky.
Neku defeated the three AI, but was then attacked by the Red Queen and her card soldiers.
Rather than look for the Vorpal Sword, Hailey used her pyrokinectic abilities to overheat the machine, so Drake switched to the next program.
The next program was a horror-style asylum. The layout was designed to separate Neku and Hailey from each other, and Drake could talk to the inhabitants via the PA system. Hailey found herself fighting a behemoth known as The Executioner, while Neku was confronted by the newly created Shelton AI, which had been created based on a challenge by Rudyard Shelton, one of the Dragonstorm personnel watching.
Hailey successfully defeated The Executioner, and was then attacked by Soundwave himself. Neku and the AI Shelton fought to a standstill, and then teamed up. Neku left to destroy the Escher cube, while Soundwave trapped Hailey in a labyrinth and went to deal with the rogue AI Shelton, but not before changing the setting again.
The next setting was a large mansion with several ballrooms. Many AI partygoers milled around the mansion, dancing and socializing. Hailey found herself dancing with a virtual Aimee. Neku reached the Escher cube, but guarding it was a virtual Snow. AI Shelton quickly agreed to switch back to Soundwave's side.
Hailey escaped Aimee and reached Drake, where she was assaulted by both Drake and the Hydra. The Snow left Neku alone, so he destroyed the cube and continued searching for Hailey.
When AI Shelton learned he was to be imprisoned and 'fixed', he fled, and Soundwave decided to delay Neku instead of follow. However, he flagged Shelton as a rogue program, meaning all other AI would attempt to capture or destroy him. (Disruptive Selection)