The Morale Level with two bars filled

The Morale Level is a mechanic in Xenoblade Chronicles X. It is also known as the Soul Stage in the Japanese version. This mechanic is linked to the Soul Voice mechanic. It is represented as a three-bar gauge above the arts palette with the HP and the TP gauges. One bar can be filled whenever a Soul Challenge is successful. The Morale Level is somewhat similar to the Tension mechanic in Xenoblade Chronicles.

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The Morale Level (Soul Stage) gauge in the Japanese version

The main purpose of Morale is that the more bars of the gauge are filled, the higher the chance of a party member triggering a Soul Challenge. One bar of the Morale Level gauge is filled each time a Soul Challenge is successful. In addition, some Arts rely on Morale to get additional effects, with stronger effects depending on the number of bars filled.