There are three areas of employment in the Colonization world: primary resource gatherers, secondary resource manufacturers, and the more specialized units: soldiers, statesmen, pioneers, missionaries, teachers, and preachers. Moreover, the player is required to manage his citizens effectively, educating the populace in various skills to increase their productivity in areas such as farming, gathering of resources, or manufacturing. While maintaining an income, the player is also required to protect his colonies from potential invasion through employing soldiers and/or artillery. With money, a player is able to buy goods, horses, ships, or artillery, speed up production, and recruit or train new colonists. The more of a commodity you and the other three colonial powers sell, the less the markets will be willing to pay for them. The European prices of goods fluctuate somewhat randomly but theoretically depending upon supply and demand. Resources gleaned from the land may be sold or converted into other goods, which may be either used or sold.

The game revolves around harvesting Food and other raw materials and manufacturing and trading goods. Subsequently, the new world is discovered, land exploration may start, the natives are met, a coastal colony is built, colonists begin to change the land to be more productive, the ship is sent back to Europe to collect more colonists and maybe horses, Trade goods, and/or weapons, superfluous items are sold (either in Europe or by haggling with the natives), and the exploration of the world begins in earnest. The journey begins with two units traveling on a ship as the ship moves westward into the unknown, the map is revealed. The player is asked to select one of the four world powers ( England, France, The Netherlands, or Spain). The Colonization experience begins in 1492. Both games pit the player as a godlike leader of an embattled civilization, the objective being to gain supremacy over rival civilizations, primarily through military means and discovery, transformation, and utilization of the land. Colonization has many similarities to Sid Meier's previous title, Sid Meier's Civilization.

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