While the first Alan Wake game certainly had plenty of scares and horror in it, the mechanics were not as strictly of the survival horror variety. Alan Wake 2 has gone fully in this direction, however, with a much darker tone, disturbing imagery, and restrictive combat mechanics that sustain the tension when The Taken attack.
Aside from limited ammo, low health, and tough enemies to bring down, a key aspect of survival horror games is an inventory system. The first game let you hold essentially as much ammo, batteries, and weapons as you wanted in each chapter, but the sequel introduces a grid system that will look familiar to Resident Evil fans. Just like Resident Evil, your inventory starts off quite small, but you can see there is plenty of space for it to grow. There are specific items hidden in and around Bright Falls that can let you expand your carrying capacity, but many are well hidden in dark corners. Here are the locations of every inventory upgrade in Alan Wake 2.
There are four total upgrade items to find in Alan Wake 2 spread across the various maps, however, they are split between the two protagonists. Saga can upgrade her inventory three times, while Alan can only upgrade his once, and he does so through a Word of Power rather than an item.
Saga inventory upgrades
The first inventory upgrade you can get in the game is in Cauldron Lake, but only on your second visit after coming back from Bright Falls. While exploring the General Store, a cultist will break through a wall to attack you. After taking him down, head into the room he opened up and find the bag on the floor to your right.
Next, you need to wait until you progress the story further and the water has been drained so you can go to the river section of the map. Down this path, you will come across one of the Cultist Stashes. By solving the small puzzle and opening it, you will find the second inventory upgrade among the loot.
The last inventory upgrade Saga can get is in Bright Falls, but you can’t access it until you get to Return 5 and have the bolt cutters. Once you have them, go down Harbor Street and then to the docks by the building labeled “Fresh Seafood” and use the cutters to open the gate. Tucked back in this area is another Cult Stash with a combination lock. Use the code 967 to open it and get the final inventory upgrade.
Alan inventory upgrade
Alan only gets one inventory upgrade that, as mentioned, will be tied to a Word of Power rather than an item. That said, you need to find and “collect” it in a similar way.
Once you get to Initiation 5, go to the Oceanview Hotel ballroom. Go to the bar and shine your flashlight over the bar to uncover a glyph that unlocks a Word of Stuff. Once you have it, you will have three options on what upgrade to get, with Magic Pocket being the one to pick if you want to expand your inventory by an additional row.
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