Valkyria Chronicles is set in a fictional version of 1930s Europe. Using Sega's internally-developed CANVAS graphics engine, the game will sport striking 3D graphics reminiscent of watercolor paintings. Combat will be a mix of tactical battle with real-time controls, a system dubbed "BLiTZ" by the development team.

Sega also handed over a few screenshots of the game, allowing for an early gander at the CANVAS engine.