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Jesse Schell's book is good, though it doesn't work for me strictly as a 'level design' book. What really helps is reading breakdowns of the level design of famous games; for example, try reading some articles about Super Mario's level design. In addition, a good thing I always remember from Schell's book and almost every game I've ever loved is to remember to give the player visual/auditory rewards for progress which don't need to impact the goal of the game (score). This just seems to increase the game's fun. :)

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