What have they kept from part II and what is different ?
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The ring is still customizable.
Many abilities are still represented. Ricardo for instance has an ability like Lucia's.
Unlike SH:C, SH:FTNW doesn't suck Definately a plus :D
Also, Fusions are done way better in this game.
Instead of having a different form at each level, Shania only has 4 fusions, but you can power them up and gain new abilities by powering her fetishes.
The four fetishes do the following
1) Gives her more spells as you power it.
2) Gives her more spell power
3) Gives her cheaper spell casting costs
4) Gives her stats boosts
Combo attacks are better defined too.
Story wise I like it better... so for me the progression is
Shadow Hearts -> Shadow Hearts: From the New World -> Shadow Hearts: Covenant
The feel is way different, though the story is still dark in many ways. But tends to fit the "pulp" era well, just as Shadow Hearts fit the post victorian era.