http://www.gamespot.com/xbox360/rpg/lostodyssey/show_msgs.php?topic_id=m-1-38688487&pid=928334
Battle system:
Lost Odyssey relies on random enemy encounters, but since there are many event-based battles, Mistwalker is reducing the number of redundant combat encounters and putting more depth in each battle instead. Though there are a total of nine playable characters, you may only take a maximum of five party members into battle with you.
Lost Odyssey's battle system is turn based with some real time elements. Lost Odyssey operates on the same turn-based principles as Final Fantasy. A turn indicator in the lower left-hand corner of the screen shows the order in which the characters will attack. Certain attacks, such as a powerful magic spell, will take a bit longer to charge than a standard physical attack. During a battle, for example, Kaim was able to attack with his sword multiple times while Sarah prepared a fiery magical assault.
There is another element in this game when a melee attack is executed, a contracting ring onscreen will appear, and letting go of the right trigger at the right moment will give the damage dealt a boost. In the game's menu, you can equip one of around 150 combat rings that you'll be able to find around the game world onto each character. These rings have a variety of power levels and elemental affinities. So if a character is equipped with a fire-based weapon, you can match him/her up with a fire-based combat ring for a little extra damage. During combat, you can use these rings by holding the right trigger while attacking. If you do so, you'll see two large rings appear on the screen, the larger of which will quickly shrink to overlap with the smaller. If you hit the switch just as the two rings overlap, you'll be able to execute a more powerful attack than you normally would.
Kaim (and possibly the other immortals) won't actually be learning new skills. He recalls them instead (he's been around so long he's forgotten quite a few things). The skills and moves Kaim "recalls" throughout the course of the game will depend on what accessories he has equipped. Regarding equipment in Lost Odyssey, there's only weapon, ring and accessory. Apparently, no armor..
Lost Odyssey will employ a wall system, which will require players to ensure that the front guards protect the rear. The invisible wall reduces the amount of damage your party takes, but it can be broken down. There is a gauge on the top-right corner of the battle sequences that represents how much protection the front row gives to the back row with their wall system, which goes up as the characters in front deal and receive damage, and drops as the rear characters take damage. The higher the meter goes, the more effective the protection is, and the less damage characters in the back take. Enemies will also use these formations and will rely on the timing based physical attack system (mentioned above), spells, and items to breech those walls.
The menu consists of the options Attack, Defend, Magic, and Item.
Magical attacks in Lost Odyssey are much more powerful than physical attacks, so sorcerers must be protected with the front line while they do their own thing. Spells are divided into White Magic, Black Magic, Spirit Magic and Composite Magic.
Another element in Lost Odyssey is the ability for immortal characters to gain new skills by absorbing powers from mortal characters. Apparently, only mortal characters can level up and learn magic. You have your basic type of elemental magic (fire, water, earth and wind) but you can also combine them to create spells with different attributes. The only way to give these spells to your immortal comrades is by first leveling up the spell in a mortal and then passing it on. So while you can farm out the best spells from your mortal friends, you'll need to continuously level them up as well or else you'll fall behind the enemies.
There are certain battles where you are able to use the objects in the area during battle. An example is shown where a crane holding a number of explosives was conveniently suspended above a mammoth black monster. After damaging the crane, the crane released its payload and damaged the beast. The Microsoft representative stated that these types of battles would occur about once an hour during normal gameplay.
It was asked if it was possible to beat the boss monsters the old fashioned way by just hacking away at the beast with swords and spells. You can, but your party must be strong enough to do so.
Another feature in Lost Odyssey's combat is during boss battles, your party members will discuss tactics in a manga-esque fashion like a pre-battle cutscene.
Sakaguchi hinted that acquired skills will be needed to equip accessories and that obtainable skills will vary between mortals and immortals in the game.
He also said that item synthesis would be in the game and would work through combining items infused with magical powers along with a basic weapon. If you look closely at the E3 07 trailer, you can see Kaim's sword glow green. And in Microsoft's pre-TGS Lost Odyssey demonstration, Kaim's sword is on fire.These could be an example of item synthesis.
In Lost Odyssey, immortal characters don't die during fights. If Kaim or another immortal character falls in battle, he is automatically revived after a few turns. Mortal characters, however, will still need to be revived via spell or item. If the entire party is passed out at the same time, you lose the game and restart from a save point.
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