The Matrix Online Previews
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There is indeed loot in The Matrix Online. Every mission has safes, boxes, or other items that can be searched through and they almost always contain an item. Defeated programs drop Information and maybe an item or two. There are pills, inhalers, and eye drops that grant temporary Abilities, regain health, or provide a buff. There are Tools, such as Data Node Locators and Decompilers, which require certain Abilities to use. You'll find articles of clothing, some mundane, and others that increase your resistances or Abilities. There are weapons of all sorts: pistols, rifles, shotguns, submachine guns, dual pistols and SMGs, and grenades. Some of these weapons have level requirements and some of them provide the user with a small buff to their combat ability or hit their target with a debuff. At this time there are no melee weapons aside from your fists and feet. Capable crafters are able to code items that equal or exceed any item that can be found in the environment and there are (boss) type programs that drop unique or rare items.
And a snip from Game Chronicles Magazine's article:
Perhaps the most impressive thing about the game, in my opinion, is what is called the Interlock system. It is the engine that drives the in-game combat. Most MMO's, most RPG's in general, for that matter, have a system where your character attacks, showing (attack animation A). If you hit your enemy, the enemy character shows (hit animation A). These two things may or may not happen in a convincing enough way to make you think that your characters foot actually just struck the other character's jaw. But, in MxO, this has been pulled off with amazing fluidity.