The gameplay we saw seemed like pretty standard RPG fare – travel about the land, enter into random battles with a wide variety of foes, slay them and gain items/powers/experience. All of your adventuring can be accomplished with the stylus as well as the D-pad and buttons, in case you want to cut loose and live a little.
One unique and interesting element we saw in action was the Cover Fellow System, a combat mechanic whereby you can select two members of your squad to rally around your attacker or defender and help them out. Attacking, they'll just pile on the damage. Defending, they'll absorb some of the impact. This seemed especially useful when a character was low on health, a foe was especially strong or when it was a new moon. During this last phase, Inuyasha loses his demon strength and magical powers, becomes very moody and demands chocolate at regular intervals.
At this point, Inuyasha: Secrets of the Divine Jewel looks like a traditional RPG with a bell here, a whistle there and a cast of characters that many seem to love. There may not be much here to draw an audience beyond Inuyasha-philes and RPG junkies, but if that sounds like you, you could be in for a happy new year.