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Term: Outside the Game Rulings
Does "outside the game" refer to the sideboard? The other question is if I play Brainstorm with Wave 3 Skywarp on the field, how do I proceed if I have 2 Defensive Formations at hand? Do I play the 1st Defensive Formation, draw a card and then play the 2nd Defensive Formation to draw a 2nd card? Or do I play the 1st defensive formation, then the 2nd, and then draw the 2 cards?

It can refer to your sideboard, however your outside the game cards do not have to be in your sideboard to be considered detectable by the game.
In resolving the Brainstorm, you will play both Defensive Formations. Skywarps ability will trigger for each of them, but you wont draw cards for the ability until youve finished resolving the Brainstorm. Later rules for competitive play required "outside the game" battle cards to be in your sideboard.
Source: Wizards of the Coast (2019-08-09)    【Link to Ruling】
Tags: Outside the Game
What does a 'Character card from outside the game' mean?

When a card refers to “a Character card from outside the game”, those cards from outside the game must be in the possession of the player at the beginning of the match.
Character cards from outside of the game do not count as part of players’ teams, decks, and sideboards, but must be referenced by other cards that are part of a player’s team, deck, or sideboard
At the end of each game, any Character cards from outside the game that were introduced during play must be removed from players’ teams, decks, and sideboards.
Character cards from outside the game must be legal within the event format.
Source: Wizards of the Coast (2019-11-21)    【Link to Ruling】
Tags: Outside the Game
What does a 'Battle card from outside the game' mean?

When a card refers to “a Battle card from outside the game”, those cards from outside the game must be in player’s sideboard at the time of using the effect.
At the end of each game any Battle cards from outside the game that were introduced during play are returned to players’ sideboards.
Battle cards from outside the game come from the sideboard and adhere to all sideboard rules.
Source: Wizards of the Coast (2019-11-21)    【Link to Ruling】
Tags: Outside the Game