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The economy is very complex in Knights and Merchants: The Shattered Kingdom, more so than most other RTS games, with a greater range of resources and a need to combine basic resources in a number of ways to create a functioning economy.
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Apart from the purely fictitious geography of the world, all game elements and scenes are based on the European, but more particularly, the Anglo-Saxon period, around 1200 A.D. Knights and Merchants recreates the era of the Middle Ages.
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There are 10 different scenarios to choose from including a number which focus specifically on the combat element of the game. The game offers a multiplayer mode by using either IPX, TCP/IP or Modem where up to 6 players can play. Unlike many other RTS games, Knights and Merchants has no unit cap - aside from limited map size and hunger features, which help to limit the player's sustainable unit numbers. This creates a challenging dynamic for the player - between managing combat, resource gathering, city building, as well as making sure there is a stable food supply for all the units. The citizens get hungry - from workers, to farmers, to soldiers. Many resources need to be transported to other buildings to be refined, and then delivered - which presents the challenge of building placement and interconnecting (every building has to be connected by roads) as the player develops. The economy is complex, stemming from the game's variety of resources, ranging from wood and stone, to sausages and wine. The AI always begins with a technological advantage against the player, allowing them to develop at a higher level. When playing a scenario or multiplayer mode, the player's technological advancement is not restricted, however in the single-player campaign some buildings cannot be built until the player progresses to later missions. To begin, the player can only build a school house that trains basic workers, but as the game advances more buildings and units become available. The game's tech tree is simple and straightforward, and most new technology is accessed upon new building completion. Knights and Merchants: The Shattered Kingdom has a single-player campaign that consists of 20 scenarios with scenario length ranging from around 5 minutes up to 7 hours or more depending on difficulty.