Phantasy Star III mostly follows the traditional roleplaying game formula seen throughout the series, with the exploration of several 2-D worlds, character recruitment, and random enemy encounters using a turn-based battle system. Unlike previous games, the "technique" magic system plays a somewhat diminished role in combat. New features in the combat system include the auto-battle feature and the icon-based menu system.[2]
The feature that mostly separates Phantasy Star III, however, is that the story spans three generations of characters. At critical points throughout the game, the main character is given the option of marrying one of two women he has encountered during his travels. This choice determines the new main character of the next generation—the child (or children) of the previous lead. The choice also affects the gameplay, as the main character may be Orakian or a mix of Layan and Orakian, which differ in their ability to use techniques and their level of proficiency with them. Two paths in the second generation in turn lead to four paths in the third and final generation, and depending on which of the four main characters is played, the ending will vary