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The objective of the game is to build and manage a railroad company, including laying track, building stations, and buying and scheduling trains. The game models supply and demand of goods and passengers as well as a miniature stock market on which the player can buy and sell stock of her own or competing companies.
The original version allowed the player to start companies in several settings: the old U.S. West and Northeast, England, and continental Europe.
The player, as the manager of the business, must lay track, purchase and schedule trains and, if the player wishes, handle individual train movement. The game also has other railroads attempting to put the player out of business by stock dealings as well as by 'Rate Wars' between railroads.
The player is given one million dollars at the beginning of the game. The player can get more cash by selling 500,000 dollar bonds at various interest rates (depending on the current economic condition in the game).
There are five different types of stations: Switching Tower, Depot, Station, and Terminal. Each of these stations services the surrounding area, with the switching tower serving its own square and the terminal handling up to 5 squares away from the station. A player is limited to building 32 stations. When the player builds their first station they also build a engine shop. This engine shop is the manufacturing area for the player's different trains. The player can upgrade depots, stations, and terminals
Once the player builds a station they can build their first train. The player then can add cars to the train and send it on its way. The player can at each station change the 'consist', which is the list of cars the train is to pick up at the various stations along the way. These include simple mail and passenger cars and specialized freight cars for each type of commodity produced in the game.
The player can continue to build tracks and linking city to city until the player runs out of funds or the fiscal year ends.
A sequel featuring improved graphics and more complex gameplay, Railroad Tycoon II, was published by Gathering of Developers in 1998 after PopTop Software acquired rights to the name.
An expansion pack, Railroad Tycoon II: Second Century, was later added which contained new scenarios that focused on modern and near-future times. The game and its expansion were repackaged together in the Gold Edition and then, with additional user-made scenarios, the Platinum Edition.
The second sequel, Railroad Tycoon 3, was released in 2003 featuring a full 3D environment, allowing for overpasses and tunnels (tunnels were present in the original but lost in RRT2), and much improved graphics over its predecessors. Gameplay changed significantly, with dynamic pricing of goods across the entire map and cargo that can find alternate means of transportation if no train service is provided. A powerful map editor was also included which allows the creation of fully detailed maps, with a massive range of possible events and victory conditions.
A free expansion pack, Coast to Coast, was released in 2004 containing new scenarios and trains.
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