Dick Grayson is playing a virtual reality game where he is the heroic “Nightwing,” playing against the evil Captain Slash. The two avatars fight in a chemical company and Nightwing is defeated once more. Dick is unaware that his real-life opponent is Marty Slack, a hacker who is helping the Joker rob banks. Marty messes things up and tries to reassure the homicidal Joker by offering him a new device: a virtual reality helmet that will let the Joker transfer computerized bank account funds.
Bruce is at WayneTech showing investors his newest projectors: tens of thousands of nanobots that can recombine to create items of any shape and appearance. He’s forced to make a hasty exit when he gets word that the Joker has broken into a bank. Batman and Robin arrive and take out Joker’s two thugs, Punch and Judy, but discover the Clown Prince has tapped into the bank systems and is transferring moneys to his account. Joker tosses a grenade at them and the Batman counters with a batarang, and the resulting mid-air explosion short-circuits the virtual reality helmet. Batman disconnects the Joker from the computer system while Robin notices the Captain Slash insignia on the helmet. However, Batman is too late as a copy of the Joker’s personality and memories have been duplicated in the computer system. Batman tries to cut off the computer from the outside world but Marty uploads the Joker out of the computer and to Marty’s home system.
Batman and Robin take the real Joker to a hospital while the digital Joker (hence Joker 2.0) learns that Marty has discovered that WayneTech is working on a top-secret project. Joker 2.0 goes on the airwaves to create a distraction, and Batman tries to use a computer virus against him. It fails and Robin realizes that Joker 2.0 is hiding in the gaming computer. They load the virus into the computer but Joker 2.0 escapes at the last minute when Marty downloads him into the WayneTech computers. There, Joker 2.0 takes control of the nanobots and makes himself a new Joker-body. Batman and Robin arrive but Joker 2.0 can control the nanobots completely and take on any shape or form he desires, easily escaping them.
The Joker gets out of the hospital and goes to his hideout, where Joker 2.0 also arrives. After a few minutes of argument, they decide to work together… but they both cross their fingers behind their backs. They go after a gem depository but Joker 2.0 leaves his real-life counterpart trapped and escapes with his gang of Harley, Marty, Punch, and Judy. Worse, Joker 2.0 has learned how to replicate himself and create a second nanobot duplicate. Batman and Robin arrive and try to short-circuit Joker 2.0 with a taser, but he escapes. The distraction is enough for the real Joker to escape with his gang. Batman summons the Batmobile to pursue but once inside the Dynamic discover that it’s actually the shapeshifted Joker 2.0, and he plans to crush them to death. Batman uses a miniature EMP device to temporarily disrupt the nanobots, but Joker 20 quickly recovers.
The Joker gets pulled over by a policeman, but it’s a shapeshifted Joker 2.0. The Joker’s gang starts to rebel against their human leader while Batman and Robin arrive and try to use the EMP device. Joker 2.0 has taken precautions against it then absorbs even more mass, creates more nanobots, and grows to giant size. He puts Batman, Robin, and the real Joker in a catapult and fires them into a sky. Batman counters by having Alfred send the flying Batarmor. He quickly dons it then rescues Robin and Joker, leaving the Joker tied up.
After leaving them on the ground, the armored Batman goes after the giant-sized Joker 2.0. Nothing he does is successful, and meanwhile the real Joker has cut himself free and knocked out Robin. He tries to escape with his gang but Joker 2.0 fires a missile at their van. Batman deflects it back while Robin takes out the Joker’s gang with batbolos. Robin spots Marty’s laptop computer and realizes who he is and what he’s done. He tries to use the laptop computer to download Joker 2.0 back into the gaming computer, but doesn’t have sufficient power. Batman, who is almost completely infected with the nanobots, quickly redirects a satellite dish and Robin downloads Joker 2.0 just in time. Joker and his gang are taken away, while Robin has the virtual Nightwing beat up on Joker 2.0 within the game simulation.
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