User blog comment:Mckrongs/July 14 2010 - New Famitsu MHP3 Scans!/@comment-69.64.236.49-20100719041046

Phials are a energy source for Switch Axes. When in Axe mode your Phial gauge fills up. When it switches to Axe mode you lose Phial power for each hit you deal. You can reload Phial power willing though it takes a couple seconds.