If you want to enhance your weapons and armor in Phantasy Star Online 2: New, you will need to first unlock what is called the item lab.
You can unlock the item lab by playing through the first portion of the game that included both the tutorial missions and prologue. After this, you will eventually unlock the feature through a prologue mission.
Once unlocked, you will still need to meet a few requirements, with the first being Ni-Grinders. Ni-Grinders are a unique resource that players can obtain from green crate objects when exploring the world. You will need these Ni-Grinders to complete any item enhancements in the game.
Beyond Ni-Grinders, you will need money, and you can earn it by killing enemies, completing various quests, or selling items. Overall, pretty simple stuff, really, and you shouldn't worry too much about it unless you are hurting for some in-game money.
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If that's the case, we recommend searching around the central city for blue talk boxes as these will indicate where a side quest NPC is located. Completing these will give you a small amount of money that should help you enhance your items.
Once you got a good amount of money, the last thing you will need is a few extra weapons or armor. The reason why is that you will need more items is that you will need to use a few of these additional items to complete the enhancement.
The more items you use will also increase the stats gained in the enhancement. You can also use a support item that you can earn through log-in rewards and in-game activities like events to boost the success rate of enhancements.
For more on New Genesis, check out Phantasy Star Online 2 Comi Codes (June 2021) and How to get Dualomite in Phantasy Star Online 2: New Genesis