The brand new Yokai Shift elements allows players to skillfully counter opponents' perilous attacks with proper timing, draw on the souls of other Yokai to perform devastating moves, or completely transform into one of three powerful Yokai forms for a limited duration, granting them immense strength and durability to more easily turn the tide of battle. Nioh 2 builds upon the original's fan-favorite elements such as the Ki Pulse and traditional Samurai Combat with the inclusion of Hide's Yokai Abilities. It draws from Soulslike influences in the form of its world building and structure where danger lurks in every corner and death is an ever-persistent occurence as players strive to achieve victory through overwhelming odds. Combining the former's high octane, fast-paced gameplay with the latter's modern approach to highly challenging masocore RPG mechanics, Nioh 2 features punishing melee combat that demands skill and mastery of its various intricate mechanics, as well as a deep understanding of enemy behavior patterns and your own abilities in order to best your opponents.

The Nioh franchise is best described as a cross between Team Ninja's own Ninja Gaiden series and FromSoftware's Dark Souls titles. In it, players take on the role of a half-Yokai referred to as a 'Shiftling', looking to uncover the mysteries of their birth, who eventually gains the nickname Hide (秀, Hide) and befriends Tokichiro, a merchant seeking glory and leaving his mark in history by selling Spirit Stones. Together, they journey through the Sengoku Era in demon-infested lands, witnessing and playing their parts in the rise and fall of characters such as Oda Nobunaga, and building a legacy that will forever change themselves, being recognized as important figures in Japan's history. Nioh 2 is both a prequel and a sequel in that the majority of its storyline takes place before Nioh, with its latter portions overlapping with the timeline and events of the original game. In the original Nioh, players assumed the role of William Adams, the first Englishman to travel to Japan, in a fictionalized, dark fantasy retelling of events in the war-torn late Sengoku period. Similarly, this new entry in the franchise takes place within the same era, albeit in an earlier time period. Nioh 2 is the follow-up to Team Ninja's Nioh, which was released in 2017 to critical acclaim and a solid reception.

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