@Garfield360UK: It isnt as punishing as fire emblem, rather when your character dies on a mission, you cannot use/revive them for the duration of the entire mission. They are revived once you complete the mission and return to your academy (hub area, seperate from the overworld map and towns). If you exhaust all 14 characters on any given mission, then you fail the mission and have to start at your previous save point.
People thought that a move away from turn based would make final fantasy less strategic, but type-0 finally seems to have got it right and you still have command over 3 character at a time, you can switch between your main 3 on the fly. The director is the same guy who directed Crisis Core:FFVII ON PSP (prequel to FFVII) so there a lot more emotion and connection to the characters in his games compared to squareenix's last handful of console titles.
It also takes a leaf out of Persona's book when it comes to side missions/activities, you get a limited amount of time to do things, and as you do 'stuff' time is knocked off your allocation. Once all the time between missions has been exhausted, you have to proceed to the next main mission, so you have to choose carefully what you want to do to see certain optional character side missions play out. I could go on forever, the psp version got great reviews overseas and by people who played import copies, I can only see this getting better review than anything from the final fantasy XIII trilogy.
As for battle, those on the overworld map are both random and visible. There will be some larger, stronger enemies patrolling that you will see to help you avoid them but enemy battles with common enemies will randomly generate on the map and like final fantasy VIII the levels of these enemies depends on the area, those in the vicinity of where you are will always be appropriately levelled. There are save points, no autosaving. On the otherhand, potential battle situations on main missions or in dungeons are ALL visible, and can be avoided. There's a system where if you defeat the enemy leader in a pack, the other enemies will retreat or surrender and you can extort them for items. One more thing to add, while this is an action game there is no jump button, which may feel odd at first but these character are 'grounded', quite literally. Its the limitation of handhelds where sometimes you cannot assign a jump button or a jump button would hinder the camera (like kingdom hearts birth by sleep for example)
This is a gamespot article that went up today, I think you'll get a good idea of what this games about.
http://www.gamespot.com/articles/final-fantasy-type-0-shows-life-is-precious-throug/1100-6424804/
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