Improve Your Martial Arts Skills
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Shenmue 3 has multiple difficulty options, so if you’re having trouble you can turn things down at any point. However, no matter what difficulty you’re playing on, you’ll want to improve Ryo’s martial arts skills and level him up.
There are three aspects to level up Attack Power, Endurance, and Kung Fu.
Attack Power, of course, raises the damage you do, and can be leveled up by sparring with monks at the Martial Hall or other characters throughout Bailu.
Endurance raises your health and lowers the damage you take, and can be leveled up by doing Horse Stance and One-Inch Punch training at the Martial Hall.
Kung Fu gets leveled through all of these activities, and corresponds to your overall proficiency and mastery of moves.
It’s a good idea to take a little bit of time each day to train. Combat encounters are few and far between in Shenmue 3, but you need to be ready when they do happen.