More Preliminary Fallout 3 Details Surface
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According to Game Informer, the battle system in Fallout 3 is called the Vault-tec Assisted Targeting System (V.A.T.S.). You'll certainly be able to tackle enemies in real-time using first-person shooting, the article says, but V.A.T.S. lets you pause time and select a target at your leisure.
This works using action points, which when used up will leave you with only real-time fighting until they charge back up again.