GB Feature: Encased Review
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When you loot enemies and containers, you find lots of crafting components. With enough skill, these components allow you to craft meals, ammunition, healing kits, grenades, and more. The grenades in particular are important because early in the game they're way more powerful than your weapons, and they allow you to survive tough fights until you can build up your character. Crafting requires special crafting stations, but you can find them all over the place, including in all towns.
For weapons and armor, you mostly only find them being sold by merchants, which means you have to sell the stuff you loot from enemies and containers to buy the stuff you need (which isn't my favorite way of gathering equipment). Characters can wear nine items, including power armor -- oops, a "servoshell" -- and they can equip two weapons. Weapons and armor have a level. You can upgrade weapons to increase their level (using crafting components and weapon manuals) but you can only improve your armor by buying better versions. You can also equip up to five relics, but most of them have pluses and minuses and aren't worth the trouble.