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Okay, Folklore is a game that takes place in the present day. A young woman by the name of Ellen is lured to the sea-side village of Doolin, in Ireland, led by a letter from her supposedly dead mother. Meanwhile Keats, a journalist from an occult magazine called Unknown Realms, receives a telephone call from a woman in distress telling him to come to Doolin. Soon he and Ellen find themselves in a murder mystery, where the answers seem to only be found in the Netherworld, the world of the dead, a realm that can only be accessed from one place in the world, Doolin. To solve the crime and reveal Ellen's forgotten past, they will need to venture to the Netherworld as travellers, where faeries and folk alike await them.

There are seven unique realms, each farther from the Earth than the one before. Ellen and Keats journey each realm separately.

Each realm has their own Folks to battle against and absorb. In total, there are over a hundred beasts, characters, and monsters to interact with. Using the SIXAXIS wireless controller, the player must battle monsters and literally "shake" them into submission and "yank" their souls (Known in the game as IDs) from their bodies. The absorbed powers can then be used to capture or defeat the monsters that lie ahead.

Players can choose between playing as Keats or as Ellen. The gameplay varies depending on who you choose, as Keats encounters a different variety of Folk to those encountered by Ellen. There are other differences between the two, one being the fact that Keats can transform into a far more powerful version of himself when certain requirements are met, and wreak havoc with his powers temporarily, while Ellen has a variety of cloaks which grant her special abilities that remain so long as she is wearing that cloak. Another difference is that Ellen usually summons the full manifestation of a Folk's soul when fighting, whereas Keats is more material and the Folk spirit only partially emerges from him and basically serves as an extension of him.

Decisions made in one story-line will directly impact the path of the other, though this only appears later in the story.

http://en.wikipedia.org/wiki/Folklore_(video_game)