Toshiyuki Kusuda, director of PS3 exclusive White Knight Chronicles, has announced details of how the sequel will require you to play through the original or have a saved file on your PS3. Don’t worry, however, as in a bighearted gesture to those who didn’t pick up the first game, the original White Knight Chronicles will come bundled with the sequel for free.
When you start WKC 2 you will be offered two options if you have a save file. Option one allows you to start from the very beginning which will require you to create a new avatar. This will start you at Level 1 but will allow you to keep all of the items you had previously gained. Alternatively, you can carry on from where the first game finished but you will be dropped down to Level 35 no matter what level you previously reached.
If you were planning on playing the WKC 1 online (using a WKC 2 disc) with players using a WKC 1 disc you won’t be able to, however some features will work across the two discs such as journal entries and messages. (Confused yet?)
Both games have upgraded gameplay systems which Kusuda believes will keep the games fresh.
Source: Scrawlfx