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If one player plays a Negotiate card and the other main player plays an Attack card the player playing a negotiate card gets to collect compensation for each ship lost to the warp. If the player playing the Negotiate card is the Zombie, their ships will normally not go to the warp. Does this mean that the Zombie can't normally collect compensation? (unless their power is zapped) Or are the Zombie's ships sent to the warp which causes compensation to be collected, but then the Zombie's power saves those ships before they get there?

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My understanding is that the Zombie's power is a replacement effect, meaning their ships never go to the warp. Given this, the official rules state that compensation is taken for each ship that the player loses to the warp when playing a negotiate card:

If One Player Plays a Negotiate Card and the Other Plays an Attack Card: if you played a Negotiate card, your side loses. Automatically. Your ships and your allies’ ships go to the Warp. However, you now claim Compensation from your belligerent opponent. You must take at random, from your opponent’s hand, one card for each ship you lost to the Warp (not counting your allies‘ they get Warped without Compensation). If your opponent doesn’t have enough cards to provide you full Compensation, you take only the cards he or she has.

(Sorry - I couldn't find the newer rules in PDF form on the web.)

Since the Zombie's ships never make it to the warp because of the word "instead" in their rules text, they would not collect compensation for the loss. This is verified here at the Cosmic Encounter wiki.

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This depends upon which version you are playing.

Eon: Yes, Zombie gets compensation. This was stated twice in Encounter magazine, with the rationale being that Zombie did indeed lose his ships from the encounter, they just went to other colonies instead of to the warp.

Mayfair: Yes again, although Mayfair flip-flopped their answer twice. Yes, then No, then finally Yes again.

Fantasy Flight Games: No, according to their FAQ. However, some veteran players (myself included) have stated that they ignore this and play according to the original Eon intent. Zombie looks strong to new players, but in practice with veterans is a fairly weak alien when it is not allowed its compensation. However, if you want to play by the book, then it's a No in the FFG edition.

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