Shadowbane Preview @ IGN PC
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So in the end, the worst that can happen to you in Shadowbane is that your city is razed by the enemy. You've lost the time and resources spent constructing the town but the other penalties for death are quite slim. The player retains most of their items and has to avoid combat for like five minutes. If your Tree is gone you spawn at one of the game's many ruins and must reestablish your guild or find a new group to join up with.