The short answer

Upgrades are bought with fragments, collected from enemy bodies, chests and the environment, at workbenches in safe rooms next to save points. You can buy ammo, grenades, flares, new equipment and permanent upgrades, and the pistol and shotgun are both upgradeable. Early on, upgrade the pulse pistol first, keep a stock of shotgun shells, and craft flares as cheap insurance.

How upgrading works

PartConfirmed detail
CurrencyFragments, from enemy bodies, chests and the environment
WhereWorkbenches (craft benches) in safe rooms, next to save points
What you can buyAmmo, grenades, flares, new equipment and permanent upgrades
Upgradeable weaponsPulse pistol and shotgun (confirmed in demos)
Experience pointsNone; growth comes from gear

Xbox Wire summarised it as spending materials at stations to craft ammo and equipment and to unlock permanent upgrades. MonsterVine confirmed fragments are the currency for crafting, upgrades and new equipment.

Why there is no XP

The developers chose gear over grinding. In the official "Meet the Creators" video, they said upgrading your character or gear, or finding new gear, is more rewarding than grinding for experience points. The Xbox Store description echoes this: you must upgrade your gear and adapt to survive.

Early upgrade priorities

The full upgrade tree and costs have not been published. These priorities follow from how the previews describe each system, and will be refined after launch.

  1. Pulse pistol upgrades first. Its ammo is infinite, so it is used in every fight and every upgrade pays off.
  2. Keep shotgun shells stocked. Buy them before exploring a new area or facing a boss.
  3. Flares are cheap insurance. They let you distract enemies or avoid fights completely.
  4. Grenades for groups. Keep a few for crowded rooms, not for every encounter.

Why the pistol comes first

Previewers leaned on the pistol more than anything else. Game Informer said you will primarily use it, and toptoplay called it a pea shooter on its own. That combination, constant use and low base power, makes it the most valuable thing to improve.

Getting more fragments

  • Scan rooms: the Scanner highlights lootable resources.
  • Loot bodies and chests as you explore.
  • Check weak walls for hidden caches.
  • Remember that enemies respawn when you save or die: more bodies to loot, but more risk.

See the Scanner guide and all secrets.

A workbench routine

Workbenches sit in safe rooms with save points, so every rest is a chance to spend. Check whether you can afford a pistol upgrade first, then top up shotgun shells and flares. Then rest to refill healing, keeping in mind that resting respawns most enemies.

Before bosses, spend more on ammo and consumables. Level designers place save points near bosses, so the nearest workbench is usually close.

Not known yet

The number of upgrade levels, their costs and their exact effects have not been published. It is also not confirmed whether health or healing capacity can be upgraded. Nothing on this page lists invented values.

Fragments, risk and reward

The fragment economy is tied to the save system. Resting at a save point respawns most enemies, which means more bodies to loot for fragments. It also means the route ahead is dangerous again.

Dying doesn't take away what you have found, so a failed push is not a total loss. The balance to strike is between farming respawned enemies and pushing into new areas where hidden caches wait.

Spending plan by situation

SituationSpend on
Early gamePulse pistol upgrade, a few flares
Before a new areaShotgun shells and flares
Before a bossShotgun shells, grenades, a full heal at the save point
Found a weak wallNothing yet; tag it and return with explosives

Frequently asked questions

Can I upgrade the shotgun?

Yes. Shacknews confirmed both the pistol and shotgun were upgradeable.

Do I lose fragments when I die?

Previews say you keep what you have found when you die, including items and ammo. Nothing has been reported about losing fragments.

Where are workbenches?

In safe rooms alongside save points. Exact locations will be added to the map guide after launch.

How this page is sourced

This page only uses details from official store pages, developer statements and hands-on press previews. Anything unconfirmed before the October 1, 2026 launch is left out and will be added once verified. Last research pass: September 28, 2026.

Sources

References and further reading for this article.