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Players will play as "Alcatraz", a Green Beret, the new successor of "Nomad", from the first game, although there has been speculation that "Alcatraz" may just be Nomad's new codename to stay anonymous to Crynet. The protagonist gains ownership of the Nanosuit 2, but in doing so angers the manufacturers - Crynet Systems. As a consequence, Crynet Systems starts a manhunt for the player. The Nanosuit 2 gives players more freedom in their options of how to tackle situations on the battlefield. The aliens - which may be completely unrelated to the original game's aliens - have undergone a major redesigning, transforming the ancient, hovering, blue-glowing, techno-organic warriors from the first game into high-tech armored cyborg war machines that stalk the ravaged New York. Crytek has stated their intention to surpass the original game graphically and gameplay-wise, and have noted that combat in the game will be "catastrophically beautiful". Crytek has also claimed that Crysis 2 will have lower system requirements than the original game, but will still exceed the original graphically and will also support true stereoscopic 3D.

Crytek has teased the redesigned Nanosuit, called the "Nanosuit 2" in an advertising brochure, created by the fictional Crynet Systems company, the creators of the first Nanosuit. The new Nanosuit supports new and upgraded features. However, suit functionality has been streamlined; there will be a brief period of time where players are able to use two modes simultaneously before the suit fully locks the mode. This is longer than in the first game, in which two modes can only be used simultaneously for a split second. The first suit's Strength and Speed modes have been combined into one Power mode, the suit binoculars function has been replaced with an advanced Tactical mode, Cloak mode has been modified to allow increased sensory input and silent melee stealth kills and has been renamed to Infiltration mode, while the Armor mode has been left more or less as is. There are two trailers, with one trailer showing the suit in a wire-frame state, the other showing the suit in a complete state. The suit is to feature many improvements over its predecessor, giving players freedom to upgrade their suits based on their own style of combat.