It could be slang. To proceed enthusiastically, vigorously, or expertly, similar to "Going all out". As with many things in the English language, the meaning depends on the context in which it is used.
"Drink your potions and go to town on that monster!" This is an example where it would mean go kill an enemy.
"After the enemy is dead, go to town and meet at the weapon shop." This example would mean literally go back to the town.
For these "other gamers on the net", we would need to some examples to tell you exactly what those mean.