Cosmetic Costumes & Imaging
Costume is the main term for items that change the looks of the character. In Archeage Classic there are wardrobe costumes and appearance items that change only certain part of the characters appearance. These two can't be mixed together or used at the same time. Costumes are obtainable mainly through Marketplace with credits or rewards from events or achievements. Costumes can be little bit different looking depending of the played race or sex of the character. Some costumes can be dyed meaning some of the costumes colors can be changed.
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Costume slot
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Usually players have wardrobe costumes in the costume slot. Costume slot is the top one in character profile (click C). From the tiny wheel players can choose Character Display settings. From there the helmet can be hidden and Back Slot Display decided what items are shown. Some wardrobe costumes have two different looks meaning players can toggle between Original and Alternate looks. Wardrobe costumes can also be hidden so the player can only see their characters gear.
Image Item?
Image item is a term for costumes that can be put on top of another item through Item Fusion. Usually players Fuse Stat costumes (bought from Guild shop) with the wardrobe costumes in order to get the stat and looks at the same time. All costumes need to be made into Image items by using Fusion Alembics on the once. Once the item is an Image Item it will have the tiny blue cross on the bottom left of the item icon. Without making an item into Image item it can't be used in fusion.
Same way other gear pieces, weapons etc can be turned into Image items and be put on top of the gear pieces. Be careful not to make the items u wants stats from the appearance item!