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Your player account level (from clearing floors) only earns new cosmetics.
You can get (relatively rare) stat boost cards to make a hero a little stronger. But once you beat the dungeon boss, all heroes are back to base stats for the next dungeon.
You'll only get "stronger" in Demeo as you develop your strategic approach through trial & error and learning from other players to understand:
-specific game mechanics (like poison spread, and the different 'orbs' and how they work.)
-the action economy.
-enemies abilities and behaviors.
-how each class' role synergizes with the others.
Cards are dealt randomly, so instead of deck building you're managing your hand and making the most of what you are dealt. (Use your cards to kill enemies, which earns you new cards to kill more enemies, which earns you new cards...)
The constant spawning of monsters and the constant turnover of your hand of cards means that neither playing to clear the level -or- rushing to the exit will work well. You'll be more successful if you find a balance between the two.
Are there settings, how much respawn, loot, rooms etc. there are so you can play the system you like most, or is it a love or hate style of game?
Progression feels great and I'd love to see some good RPGs like that in VR. But Demeo is not that game. For me, it's enjoyable - it's quite good at what it IS doing.
If you aren't at least intrigued by the demo, though, you might not like the full game.
It's basically the demo floor, plus a larger second floor (maybe about twice the time to clear as the first,) and then a smaller 3rd floor with the boss. Each module is largely that same format, but a different environment, with a few new enemies, and some new mechanics and strategies that build on those basics in interesting ways.
IMO It's extremely rare for it to get so overwhelming that it's un-fun (with the exception of the rat king module.) I'm often surprised at the mobs and poison messes I'm able to make it through, even when the RNG is unfavorable and myself and/or other players make some poor moves.
I'm usually able to clear most floors of all chests and gold and make it out with no major problem from the spawning enemies. But there will be times that it will be more advantageous to cut and run once you have the key (rat king floor 2 is a bad one for forcing you to do that to survive.)
There are not any difficulty settings like you mentioned. Enemy hit points and damage do scale down if there are fewer heroes in play, but it's balanced to pretty much be the same game.
Playing by yourself can be fun, but i benefited greatly from learning with other players first. Being randomly matched with strangers can either be a wonderfully pleasant surprise, or really suck. You'll never be stuck in a bad game, though, as you can leave any time, or kick out problem players if you hosted the room. I haven't made the rounds lately so i can't speak to the current quality of the player base (though in my experience it gets worse the longer a game exists...)
Then don't hold your breath. It is not in the roadmap. The game itself was not designed as a classic RPG / Roguelike
BTW you can send them your feedback on https://resolutiongames.canny.io/demeo