If it's like previous versions of BC3000AD then armor matters, but only locally. That is, you can have a hole punched 100% of the way through an area covering just 10% of its total (reducing you to 90% armor), thus exposing the softer hull and internal systems in that area. Systems like launch bays can be especially vulnerable because they are, out of necessity, among the most outlying sections of the ship. If you have bandits on your tail continuously blasting away at a particular section of your ship, as can often happen when you're concentrating on some other target, the one attacking you can more easily hit you in the same spot repeatedly, reducing the armor (and hull) there to a point where internal system become vulnerable. As you twist and turn to follow your target (at least for me ), hits are more likely to be distributed around different parts of your target, so you might see armor reduced by a much greater percentage before the hull and internal systems become damaged. I haven't tried this yet in BCM, but in BC3000AD you could take one of your own FC out and blast away at a specific spot on your CC and watch just what I described above happen. That is, total CC 'armor' will be reduced only slightly (5% - 10%), but you will then start to damage the hull, then the systems located in that section of the ship. All-in-all very cool, IMHO - I sure hope it still works this way .