is terraria RPG?

Answer 1

No, it's an open-world sandbox 2d action adventure

Comments

but it does have some RPG elements in it like NPCs, loot, monsters, and stuff

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So is, say, Pac-Man an RPG as well? See, NPC stands for Non-Player Character, as in anyone but you. It has monsters (Blinky, Pinky, Inky and Clyde). It has loot, in different forms even. It even has a buff. Still not an RPG. Someone seems to stand corrected =]