I faintly remember the game, I played it as a kid in the early 00s. The game involved a chessboard where at first you could play chess as you normally would. When a piece would take another piece however, both parties would end up in a spaceship battle, top-down like Asteroid and depending on the value of the piece, stronger and/or multiple ships would show up during the battle. The battle with a pawn against a queen was very difficult from what I remember.
The graphics I think, were somewhat beyond pixelart as the early 00s usually did. I remember the board and the environment of the game being quite dark with the pieces being lighter. As far as I remember, the pieces on the board themselves resembled regular chess pieces.
I've tried looking around on search engines but I usually just end up landing on Battle Chess which is very different in my opinion. I'm trying as hard as I can but I can't seem to dig up a story related to the game.