When someone in the group touches an enemy, the entire group enters its own little instance for battle. On the outside, other players can't join the fight but they can cheer you on, giving the group a temporary buff.
On the inside, however, the game utilizes a version of the active time battle system that feels like a co-op version of Final Fantasy XII more than anything else. Every few seconds, you get a turn, and then you choose which attack, skill, or item you wish to use from the menu that pops up.
Check out the video above to see the battle system in action.
Dragon Quest X was released on August 2, 2012, for the Nintendo Wii in Japan. Stay tuned to Kotaku East for our import preview later this week.