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I'm still new to this game, so this is probably not news to anyone, but Britain surrenders if London, Manchester, and Edinburg are taken on the same turn. I can usually take France by April of 40, and the 3 key cities by December of 40. This allows me a March or April attack on the SU. The Med becomes an Axis lake. There is no Yugoslavian coup. The British Navy disappears and the combined Axis navy rules the Atlantic. Spain and Turkey will both enter as Axis allies with solid diplomacy. Germany is collecting over 1000 bucks a turn. Japan has less to worry about. Hence, the Axis wins every time. I found this out by accident, but once you know about it, you can plan it out and be successful almost every time. Is the 3 city feature a part of the game or a fluke? I cant find this feature anywhere in the rules.

Because the UK has three capitals in total then if all are taken on the same turn the UK may well surrender at that point.

Are you playing as Axis against the Allied AI?
I just ask as I would generally expect the Axis capture of all three cities on the same turn to be very rare against an experienced human Allied player, but maybe we could do with adjusting the AI's response to such a move?

Yes, Axis against Allied AI. Drop para, transport units into captured ports, and surround all three capitals. Attack to weaken, but not capture, until all three can be taken on the same turn.

I thought Ottawa became a final redoubt British capital. Was that changed somewhen?

Don't know about Ottawa. Just the 3 that lead to Britain's surrender.

There is a Decision Event for the UK to transfer its capital to either Canada or Australia, and in the next patch a change to its settings will be introduced to prevent this sort of situation from being possible.