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Deals damage, but the user faints after its use. If the target uses Protect, is a Ghost-type, or the move misses, then the move will deal no damage, but the user will faint regardless.
As this move no longer halves the Defense of the opponent and consequently deals much less damage, Explosion is much less competitively viable in BW. Therefore, Pokemon such as Heatran, Azelf, and Metagross are better off using their STAB and coverage moves.
Selfdestruct is a weaker version of Explosion that is also Normal-type.
Final Gambit only faints the user if the move hits, and its damage is dependent on how much HP the user has left.