Soul Sacrifice has levels. When you defeat a monster you have the chance to "save it" or sacrifice it. Depending on your decision, you win blue or red EXP. The japanese demo level cap is 20. You can also level up your magics.
I don't know what's the difference between "blue" and "red" exp, as I don't understand japanese. But if you get enough experience of a color, you level up, and it apparently change your character "alignment", or something like that. Sorry about the stupid (and probably wrong) explanation, but it's all I could understand from the demo.
