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Deals damage. The attack repeats itself for 2-3 turns, during which time the user is locked in play, after which the user becomes confused. The user only uses up PP on the turn the move is first used, and not on subsequent rampage turns. If the user is prevented from moving while rampaging, the attack misses, or is blocked by Protect or Wonder Guard, the attack will immediately end and the user can switch attacks. If this move is called by Sleep Talk, the move is used for one turn and does not confuse the user. The confusion side-effect will only occur if the user ends its Outrage naturally, and without disruption. The confusion is not preventable with Safeguard, but can be prevented by Own Tempo. In a double or triple battle, the target of this attack is randomly selected from all opposing Pokemon, even if they are not adjacent to the user.
In terms of pure power, Outrage is right up there. As the strongest physical Dragon-type move available, it is used on pretty much every physically-inclined Dragon-type Pokemon that gets it. Its universal appeal means that it will be seen from the realms of Ubers all the way down to the lower tiers.
Last generation, with the Platinum Outrage tutor, it became available to pretty much every fully-evolved Dragon, and I can assure you that they enjoyed it. This move is so obscenely powerful (the same can be said about the users) that it will even dent most Steel-types, the only type of Pokemon that is resistant to it. However, using this move does not constitute an auto-win by any stretch; as said before, it locks the attacker into it, and after that the user can be revenge killed by a faster Pokemon or a powerful priority user, especially due to the confusion side-effect. Use it wisely and it can slaughter a lot of opponents.
Dragon Claw is a much less powerful alternative with no side-effects.
Dragon Rush is a less powerful and less accurate alternative with no side-effects.