I really wish they would subtitle it and release it .... it would clear all confusions we have abot combat.

The demo consisted of a scene in the game introducing one of the main characters, who was trying to find an acquaintance in the middle of war. The CG sequence is one of the best we've seen yet on any console, and this scene also led into a battle sequence which showed off some of the game's mechanics. In that battle, players controlled various squads which engaged enemy units on a large battlefield. The battle system is at its core turn-based, and actions take place after players input commands. What makes it different from other turn-based system is the sheer scale of the battles. One interesting feature of the battle system was a morale gauge: the more successful one side did in battle, the more the gauge changed in favor of that side. Side attacks also played a role in determining how characters and party members received damage. It looks like a fairly complex system with a lot more aspects than mentioned here.

Also included in the demo sequence was a chance to play as an individual party, and this was very similar to most traditional console RPGs we are familiar with. Combat in dungeons is not random, and can be avoided if necessary. When in battle, the mechanics are similar to those mentioned above except for the fact that it is on a much smaller scale. Graphics both inside and outside of battle are similar, and the transition between battle and main gameplay is relatively short.

What can we glean from this? This has the markings of a great game. While previous trailers haven't necessarily emphasized how complex the battle system is, it was made evident during the demo. If The Last Remnant can combine its enormous battles and beautiful graphics, we have a winner on our hands. This is one of the big ones to look out for, and it deserved the long lines that it created this year. Also, it will be released simultaneously in Japan and North America on November 20, so it looks like most of the details in the game have been taken care of. Definitely check it out when you have a chance.

In the world of The Last Remnant, you have a large amount of control over where and when you throw down. From what we've seen, there are no random encounters – when you see an enemy wandering around on the world map, you can either skirt around it or get in close to engage.

Doing the latter puts you in a state called Deadlock, of which there are a number of varieties, depending on where each side's unions are placed and how they are facing. In a Flank Attack, a union is attacking an enemy from the side and deals extra damage as a result. If two unions flank an enemy union, then any further attacks will occur from the rear – this results in a Rear Assault, which deals even greater damage. And you don't have to be within melee distance to engage an enemy. In a Raidlock, you can force a distant enemy into a Deadlock, we're assuming with ranged attacks.

Once you've stepped up and called out an enemy, it's time to put your Arts into play. There are three types of Arts in The Last Remnant: Combat, Mystic and Item. By repeatedly using Arts of the same type, you'll be able to beef up the ones you know and learn new ones.

Combat Arts are offensive skills that deal more damage in battle than standard attacks. You'll use up AP when you deploy these attacks, but from what we've seen it'll be worth the cost. Square has shown off two Combat Arts – Quad Slice and Devil's Due. The former lets your character wield four different weapons in their attack, slicing the enemy in a cross pattern. Ouch. The latter is a dual-wield Art lets you strike with two weapons at your sides. Square describes this action "as if striking imps perched on both shoulders." Serves them right.

In addition to Combat Arts, you'll also have access to Mystic Arts, essentially the magic system in The Last Remnant. These Arts also use AP and can be offensive, defensive or restorative (at both long and short ranges). The spell Caustic Blast, for example, surrounds enemies with "globules of acid" for heavy damage.

Item Arts use items from your inventory instead of AP and can be used to restore HP, buff your party or, we're assuming, hit the enemy with negative status effects like poison or paralysis. In an example Square showed, mixing abyssal tonic and shockberry results in something called Cyclone Cream, which sounds nasty.
When you're not using Arts in combat, you'll be swinging sharp things at your enemies. You can equip weapons in both main and sub-slots in the equipment menu, and how you do so determines your wield style. The Power Grip style lets you arm yourself with large axes and spears at the expense of going shieldless. The One-Handed style accommodates small axes and swords and allows you to equip a shield to bump up your defensive stats. Dual Wield is self-explanatory, and one race, the Sovani can equip a weapon in each of their four arms.

Just posted those already Jin :)