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I have never tried playing Ethiopia, either in SP or MP. However, I do not believe that it is possible to survive as Ethiopia vs a human Italy (unless the Italian player is rather un-skilled). Italy starts the 1936 scenario with 15 transports, and can easily bring in many more divs from either mainland Italy or Libya, and starts with better tech.

If such an early attack would fail, the Italians can strike again in early April, since they can basically double their soft attack 90 days into the game, during which time the Ethiopians would not have produced very much (1 inf, or some militia).

The way I see it, there is only one way that the Ethiopians can ever have a chance: outside help. If somebody sends them expeditionary forces this would help. The UK has some militia in Kenya, but this wont help very much. The UK could however ferry some real troops from Egypt or India, and possibly fly them some bombers as well. The UK could of course send their entire fleet as an exp force, sinking Italian supply convoys and preventing the Italians from running in more troops (they could still place newly made troops here). Also, any player could start dishing out tech to Ethiopia, with 3 non-Axis players this would be 3 tech/week.

However, most games have house rules about these kinds of things. Good luck trying though.