As Tales of Vs. is a fighting game theres no dungeons and no towns. Fights are handled like typical Tales games, but the way they happen is slightly different because of the genre of Tales of Vs versus past tales games.
Battle System
Tales of Vs takes the basic functions of the linear motion battle system and updates them for a fighting games system. Normal attacks and special arte attacks are still possible and items appear on the battle field and players are able to obtain them to recover. Stages are also intractable such as barrels rolling towards players and disappearing platforms.
Artes
In the tales series Artes are used to dish out extra damage aside from typical character combos. In general these abilities are learned over the course of the game by leveling and in some cases side events. Moves are usually designated to one button and 4 artes can be mapped Linking these moves with your normal combos is the bread and butter of the Tales series in terms of being offensive.