So the demo's out, here's the link. PC demo here.
 
So first impressions after playing it for about 20 minutes: I like it. I don't have a very good PC, so I'm playing the 360 version. Obviously if you've seen videos of the PC version, the 360 one won't be as visually impressive, but I still think it looks pretty good. Some nice looking foliage in this game.
 
I found the combat better than I expected. While it's not as refined as say, Demon's Souls, it still pays off to time your attacks (especially once you get new attack skills) and evade enemy attacks mid-combat. You can cancel out of your attack animation into a dodge, which I think is great.

Demo was ok. But there is so many other generic fantasy RPGs like this.

The Gothic games are more sims than traditional RPGs.  They have their issues but they could hardly be called generic.

" The Gothic games are more sims than traditional RPGs.  They have their issues but they could hardly be called generic. "

" US link "

• Subtitles inconsistent with what was being said. Wouldn't be a big deal with minor details, but as it happened in two instanced they mixed up 5 with 6 and hours with days.
• One quest description's final two sentences were suddenly in German. I can read a little German and I actually thought it was kind of funny so I didn't really mind that much, but it was still weird.
• There's a torch in this game. If you equip it and take it out it creates light around you, which is nice. If you then put it away the light of the torch stays in the place where you put it away, which is odd.
• Some texture pop-in and a few rough graphical edges in general.
  

• You can either use an actual shield or create a shield of magic. Both nullify most physical damage done by enemies. This is just something I just really like in general.
• The world seemed to be seamlessly interconnected. I think I saw maybe one or two story related loading screens in my nearly two hours of playing this.
• As said before, you can create light around you. Not only with torches, but also by equipping magic, which looks really cool. Basically, you can illuminate caves or other dark places with purple glow (or that of other colours of course).
  
• As I played more, I started to appreciate the rhythm of the melee combat more. Pulling off 'flurries' by timing the button presses corresponding to the glow on your weapon is a really cool incentive to not just mash about mindlessly.
  
• Surprisingly good ranged combat. If you auto-target enemies with the bow, you'll obviously hit them more easily, but if you manually go for headshots, you'll actually inflict more damage. Don't see that a lot in RPG's. Also, after you fire one shot with the crossbow you'll keep walking slowly, as long as you keep shooting, which is extremely useful when aiming for heads.
• LOOT. I went through 3 different armour sets, 3 shields, and probably a dozen melee weapons in this demo. You can even assign these items to change between them on the fly.
  

I just played the Demo to completion. It's a big step forward for the Gothic franchise. The change in developers (from Piranha Bytes to Spellbound) did give the series a much needed reformation to more modern and streamlined mechanics, while keeping the core of the experience intact.
 
I will definitly get this, as long as reviews don't find gamebreaking bugs (Gothic 3 especially suffered from this). Gothic 3 kinda ruined the franchise for me, but I'm positive that this iteration will win me over. Gothic 1 & 2 are some of my favorite gaming experiences in the realm of singleplayer RPGs. I'm glad that the franchise seems to be back on track.
 
If you haven't played the demo yet, give it a shot. It's worth it.

I just finished the demo, and while it wasn't great, I liked it. It was certainly a step up from the last game. 
 
I'll wait and see how Two Worlds II shapes up before I make a purchasing decision, though. But if I'm being honest, either way I probably won't touch Arcania until it hits the bargain bin.

After playing through the PC version, which runs 'effin great with no bugs or issues at all - maxed out on all fronts at 60+ frames a second, I gave the 360 demo a shot. While it still looks good (yet noticably worse) and the gamepad interface is well thought-out, I ran in a few issues I didn't have with the PC demo.
 

• Movement on the analogstick still only registers 8 directions like PC WASD movement instead of 24 (I believe... could be more)
• Walking is too hard (too small a zone on the analogstick is reserved for walking - yeah, I enjoy walking in games to take in the scenery every now and then)
  
• Pathfinding is shoddy (presumeably due to lacking memory they can't move around too much without it causing issues, which results in enemies being temporarily immune to damage as they walk back to their initial position)

" 

• Walking is too hard (too small a zone on the analogstick is reserved for walking - yeah, I enjoy walking in games to take in the scenery every now and then)

not bad, but the voice syncing could use some work, also sometimes people say something different than the subtitles like the witch said that i had been there for hours while the subtitles said days.

I'm totally fine with generic as long as stuff WORKS.

So played the 360 demo, and I wouldn't touch thing until it sub $20, and I don't have any games I am even semi interested in.  The world was nice looking if generic, now I get there is graphic limitations for consoles, but god damn talk about pop ins and frame rate issues. It makes oblivion seems like a smooth game. Loading into a weird 'conversation view' every time you talk to anybody, is so god damn annoying. The inconsistencies between what is said and what the subtitles say is a bit annoying and does nothing but justify my sub $20 opinion. The combat felt fine, and leveling up actually feels like its actually making you more powerful, and getting more powerful made the combat more satisfying. I am still looking for this generations Morrowind, and I am hoping this turns out to be a good adventure RPG with a good land to explore.

"So played the 360 demo, and I wouldn't touch thing until it sub $20, and I don't have any games I am even semi interested in.  The world was nice looking if generic, now I get there is graphic limitations for consoles, but god damn talk about pop ins and frame rate issues. It makes oblivion seems like a smooth game. Loading into a weird 'conversation view' every time you talk to anybody, is so god damn annoying. The inconsistencies between what is said and what the subtitles say is a bit annoying and does nothing but justify my sub $20 opinion. The combat felt fine, and leveling up actually feels like its actually making you more powerful, and getting more powerful made the combat more satisfying. I am still looking for this generations Morrowind, and I am hoping this turns out to be a good adventure RPG with a good land to explore. "

• Walking is too hard (too small a zone on the analogstick is reserved for walking - yeah, I enjoy walking in games to take in the scenery every now and then)

I was really impressed with the demo actually.  For some reason it grabs me far more than Dragon Age or The Witcher or Risen have...  Still not worth buying at full price, but it's on my price watch list now.

" @Seppli said:

• Walking is too hard (too small a zone on the analogstick is reserved for walking - yeah, I enjoy walking in games to take in the scenery every now and then)

While I haven't played the game yet, that might be more to do with the 360 analog stick itself.  They're designed with huge dead zones, making slight pushes impossible.  Seems to work for some people, but I was having problems making slight aim corrections in Dead Space just last week. "

" I was really impressed with the demo actually.  For some reason it grabs me far more than Dragon Age or The Witcher or Risen have...  Still not worth buying at full price, but it's on my price watch list now. "

Horrendous framerate on the 360 version. Seems to run at less than 25fps constant.

I like it. Took down the PC demo. Played with both KBM and 360 controller. You can't map the controls at all but I saw with the 360 controller that left trigger gave a lock on target option and the analog stick allowed you to control player speed from walk to run.
 
With KBM it's default run at all times, no target lock, and the Z button is supposed to be for zoom and I'll be damned if I can see that doing anything. I'd prefer to play this with KBM if I can but it looks like either way you go it's going to control well and be a solid game. I hope the rails are gone in the final game vs. the way it was in this demo. I also wouldn't have minded a little more control over the camera.  
 
I'll need to raid the settings.ini file.
 
So Two Worlds 2 has been delayed? Is that confirmed? I still see mostly Oct. 5's holding all around.

" @louiedog: Generic is such an overused term in video game discussions, particularly in regard to fantasy settings.  There are thousands of books published every year that borrow from the same Tolkienesque source, but the people that are into it realize that it has gone from being generic to simply being a facet of the genre.  The good games are the ones that do unique things within that "generic" setting.  Applied elsewhere, this logic starts to fall apart.  You don't see shooters being panned for their generic middle eastern settings or generic soldier-boy characters.   "

Its not that bad.  Its not Morrowind, but its still ok.  I might have to pick this up next month.

" The Gothic games are more sims than traditional RPGs.  They have their issues but they could hardly be called generic. "

 I just played the 360 demo, at first I hated it, the voice acting was terrible the graphics (on 360) looked really bad and had some frame rate issues. 
But then I got to the 2nd cave and the godamn LOOT got me hooked :D.  So much awsome loot that looks bad ass on your character!! I loved the second cave/dungeon.
I really enjoyed the combat, dodging away from attacks, blocking, switching from bow n arrow to sword n shield and magics on the fly, It was awsome.
But the combat was  rather on the easy side, and the shield bash skill was hard to do, yo have to hold Y and press X at the same time lol.
Im looking forward to the full game be it mainly for the loot.
 
Just played the PC demo, I'm  surprised to say that i enjoyed the 360 version alot more... ofcourse the PC graphics on High were far better but the interface and controls on the 360 were better imo. 
The 360 controls felt much better then the Mouse and Keyboard and the 360 interface looks much beter then pc version for some reason. 

I'm a bit late, but just played the demo, not to completion because I had to go and there's no save (is there?). 
Really, really liked it. 
When I started, I killed a few sheep, just to check the combat out. 
As I came to the village, I talked to some old lady (I think it's my mother?) and she said: "OOO, is that blood?" 
The hero replied:"Ah, don't worry, just a bunch of sheep."  
She said raged:"Are you slaughtering sheep again? You were suppose to watch over them, not kill them!" 
 
Needless to say, the game won me over immediately. The combat is quite good, loot lust started to kick in after 10 minutes, and I actually kinda like the graphics, especially the lightening effects. 
Great atmosphere altogether. 
I'll definitely get it. Just feeling a bit sad for the game, coming so close to Fable 3.