Setting
The setting, Mythic Europe, is based on Europe of the 13th century; the geography is the same, and the mundane (non-magical) politics are practically identical. However, in Ars Magica the "Medieval paradigm" - the collection of folk beliefs and superstitions - is correct; this means that the beliefs and superstitions of the medieval period are existent reality: lost children are really abducted by Faeries, sickness and crop failure are caused by Demons, Angels help the righteous, and dragons and other mythical creatures exist. In 3rd edition, to tie the game into the World of Darkness line, this was the case because those were the beliefs; other editions distance themselves from this interpretation, simply taking place in a world where those beliefs happen to be true.
Player characters take on the role of both a Magus (or if female, Maga), and of a Companion (in Latin, "Consors"). Companions are select skilled non-Magi (warriors, foresters, castellan, and so forth) who help wizards conducting their affairs, as Magi tend to be distanced from "mundanes" due to the effects of their magical "Gift". Additionally, there are a number of Grogs (skilled peasants) who can be controlled by any player. The wizards live clustered in specific citadels called Covenants, which are often built in places of power. Covenants are the home base for the Magi, but the Magi tend to roam the Magical Europe for their adventures. Some sources for the game consider the covenant to be the central character of the game.
Read more about this topic: Ars Magica
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