The player's combat capabilities are in large part governed by the character's combat skills and weapons.

Arcanum's combat design has received some levels of criticism, with reviews usually stating that it is poorly balanced and frantic. Three combat modes were included in the final release of the game: real-time, turn-based, and a faster version of turn-based. The player (dwarf, center) in combat with the character Virgil against an Ailing Wolf. Ultimately, players will encounter hostile opponents (if such encounters are not avoided using stealth or diplomacy), in which case they and the player will engage in combat, which can be real-time or turn-based.

Many quests offer multiple solutions for the player, depending on their playing style, which may consist of combat, persuasion, thievery, or bribery. Occasionally, inhabitants will require the player's assistance in various tasks, which the player may choose to solve in order to acquire special items, experience points, or new followers. Gameplay in Arcanum consists of traveling through the game world, visiting locations and interacting with the local inhabitants, typically in real-time. The game proved a commercial success for Troika following its release, selling over 200,000 copies and generating revenue of over US$8.8 million, being deemed the fourth best-seller for video games within the period of its launch by NPD Intelect. The game, conducted from an isometric perspective and within an open world, offers players the opportunity to craft their protagonist with a variety of skills, including the option to be gifted in magic or use guns and gadgets to combat enemies, and complete quests in different ways. The game's story takes place within a fantasy setting currently undergoing a transformation from its own industrial revolution, in which magic competes against technological gadgets, and focuses on the efforts of a zeppelin crash survivor to find out who attacked the vessel, ultimately discovering a plot by an ancient power to return to the world and cause chaos. Arcanum: Of Steamworks and Magick Obscura is a 2001 role-playing video game developed by Troika Games and published by Sierra On-Line for Microsoft Windows.

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