Pathfinder Adventure Card Game

Can I adjust the difficultly by changing the size of locations?

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Yes
Normal mode uses medium-sized locations (typically 9 cards plus any story banes). To make the game easier, use small locations (typically 3 fewer cards); to make it harder, use large locations (typically 3 more cards). This will generally change the number of explorations needed to finish the game by about 2 per location.