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Yes, the graphics took a hit.
It uses a XMB style menu system. Meaning that you use the d-pad to move through different menu categories horizontally and then different sub-categories vertically.
Also, it uses the L2 and R2 buttons as modifiers. Meaning holding L2 and pressing the face buttons will have a set of 4 abilities and holding R2 and pressing the face buttons will have a different set of 4 abilities.
Lastly, it will be compatible with a keyboard and mouse if you dont like using a controller.