Fire Emblem: Three Houses will get Lunatic difficulty option as a later update for free.
Fire Emblem: Three Houses director Genki Yokota confirmed in an interview with Famitsu (via) that Lunatic difficulty will be added as a few update shortly after the games launch.
Lunatic difficulty is the “very hard” option for the series and will supposedly provide a proper challenge for series veterans.
The difficulty setting should not be confused with the Casual and Classic Mode settings which affect permadeath for your fielded characters.
There’s also another issue with the game that I wish the developers would fix – the tiny text. Although better than the demo, the final game does have some issues with the text size being too small. Hopefully that gets fix in a maintenance update soon.
What difficulty will you be starting the game on? Let us know in the comments below.