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Its an abbreviation of Fantasy Action/Adventure Role Playing Game. It usually refers to the medieval style of RPGs that involve magic. FARPGs sometimes are confused with JRPGs, or Japanese Role Playing Games, which are a similar genre, but lack the medieval feel to it.

Final Fantasy is a JRPG. Involves giant swords, magic, and regular characters.

The Elder Scrolls series is an FARPG. It involves medieval weaponry, magic, and medieval speech.
by TikiShades June 18, 2008
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