Valkyria Chronicles is set in a fictitious continent reminiscent of 1930s Europe - divided in two and ruled by the Empire and the Federation. The Empire has set its sights on invading a small neutral country called Gallia, which is situated in the middle of the two great empires. The game follows a hero named Welkin and his fellow soldiers of the Federation's 7th Platoon as they engage in a series of epic battles.

Built upon the new "CANVAS" engine, developed internally by SEGA Game Studios Japan, Valkyria Chronicles' stunning 3D graphics resemble a watercolor painting in motion, taking full advantage of the processing capabilities of the PS3. The power of the PS3 also allows the development team to exploit the full potential of this new engine, giving players many different stunning environments to explore. A new type of tactical battle mechanic has been specifically designed for Valkyria Chronicles. Known as "BLiTZ," this gives players freedom to strategically move around the environment and attack enemies using real-time controls, something never before seen in the tactical role-playing game genre. The new "CANVAS" engine technology, the "BLiTZ" battle concept and an epic storyline offers players hours of exciting gameplay.