Well a battleship has an attack of 18, and a phalanx has a defense of 2, but...
If the phalanx is veteran on a mountain, fortified in a fort, it will have an EFFECTIVE defense of 27. (veteran is x1.5, fortified is x1.5, fort is x2, and mountain is x3).
In this case, the odds of the phalanx winning are 27:18 or 3:2. This is a 60% chance. It is a well-known strategy that a well-fortified defense unit is the best way to kill a battleship. When I use battleships, I use them for picking on weak cities which have no city walls.
The highest possible defense of any unit is a mech inf., veteran, fortified in a city with city walls on a mountain (very rare):
6*1.5*1.5*3*3 = 121
This is higher than the nuke's attack value... In fact, well fortified mech infs, often have more defense than a nuke. If you watch carefully when a nuke attacks, it sometimes LOSES because of this. Of course, losing has no effect on it... it still detonates and wipes out the city, unit, etc. But it IS a bit strange that a nuke could lose to an APC.
The people who whine about things like this ruining civ1 are just that, though: whiners. These situations are rare, and if you know about them you are pretty stupid to walk right into them. I mean, who ATTACKS a large, well-defended city anyway? I always use nukes or a seige (covering their squares so they can't produce food or resources).
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