This game is also available on PC.
To make an arena a smoldering crater, select a character with an Ultimate Move (for example Goku's Spirit Bomb or Trunks' Burning attack). Then, use the Ultimate Move. Note: You cannot destroy the World Tournament, Hyperbolic Time Chamber, or Kami's Lookout (when you are actually on the Lookout) arenas.
Go to versus or practice mode and choose a character that has an Ultimate Attack, such as Trunks or Frieza. Use it on a character and after the blast you should see that Planet Namek is almost about to blow up with lightning and tornadoes.