The game has more than seven different types of units as opposed to Anno 1602 with only four. The military form of this game is more complex than that of Anno 1602. Building abilities are amplified with expansion, meaning larger populations have more effective building powers. Buildings in the game do not necessarily have a specific function for the player, but have an implied or under effective function for settlers in the game. The second levels allows the player's settlers to build more advanced buildings however, settlers require more goods to stay alive. After giving citizens basic goods like food, cloth, and alcohol, they develop into Settlers, the second civilization level. Technology of Anno 1503 begins on the pioneer level. Besides being able to build a custom designed palace in the aristocrat level, the entire population at merchant level is more strategically sound.

Instead, it is a bonus level that advanced players can upgrade to. The aristocrat level is not considered the highest level. Since the game is built on different levels of civilizations (pioneer, settler, citizen, merchant, aristocrat), each civilization level requires more goods and more balancing skills and finesse.

It begins with the creation of cheap goods, and progresses in civilization levels throughout the game leading to more advanced goods. The economy in Anno 1503 is built on providing different goods to colonist citizens. Each different player, human or computer, is represented by a color. The computer players also have adjustable personalities, which the player customizes before the beginning of a game. Like Anno 1602, the AI computers are progressive, meaning that they advance along with the human players. The game is constructed around one human player and three computers. Eventually, citizens become Aristocrats, and require at least ten different goods and numerous services, such as access to a large church or a bathhouse. Resources begin as food and cloth, but progress into more complicated and different goods. After finding a suitable site city building begins. Anno 1503 begins with the player in control of a ship filled with men and material searching for an island to settle.

Anno 1701 original soundtrack