The plot of Power Factor is based around a video game within a video game concept: the players take on the role of a character who is in turn playing a virtual reality simulator at the Atarian Leisure Moon resort, in which he assumes the role of the hero Redd Ace. The virtual reality simulator, in the context of the game's fictional world, recreates Ace's famous historical battle against the Sinlendo Techmods from the parallel dimension of Ceeg that invaded his home universe to recover bomb components in the installations of the Ceegraian Power Station that were necessary to defeat alien race.