So in Vergen I beat the Dwarf Burdon a second time.
He says as my reward I get the Sword of the Warrior Princess Xenthia.

However there is nothing in my inventory :(

Any way to fix this?

Tried searching the forums and the only thing I found were 2 posts that had the same issue as me, no one offered a fix though.

Perhaps a mod could fix it and add it to the mysterious merchant?

Well from my understanding its all a joke. You do get a weapon... A rusty steel sword. Atleast i think thats what i got.

This. I lol'ed when I saw it. Damn you Skalen.

That is strange. But when i went there i knew i had recived a letter and a key (so they were on the top). Then when he said that i had won the item i had a rusty steel sword at the top.

I guess i could go in the game and check.

In few occasions when there are prizes involved with winning something i don't get the prize , the quartermaster when on Roche path did not gave me anything and Skalen too

The folks who end up with a rusty sword didn't back out of the conversation system. They kept gambling with him 'till he called it off.

Ah yes you are correct. I did gamble again until he told me to go away.

After reading this I tried playing him until he told me to go away, and sure enough, I got a sword. It didn't pop up in the items collected HUD though, just "collected cloak x 1".

What's even more interesting is I did not get the rusty sword, I got a kadwenian steel sword, which was actually quite god compared to my old one.
Just a tangled mess of bugs I guess. :p

Glad you could confirm it. I don't see what is buggie about it. Seems to Skalen's character, if you ask me.

What's buggy about it is that you do not get the item if you stop playing after he claims to have given it to you. It is a trivial bug in fact, but it does not seem trivial when you encounter it for the first time, because it seems like you are missing something important.

I think this was one of those references to modern day culture they mentioned were in the game, as in, Xena Warrior Princess. The same NPC, if I remember right, mentions a man named Blazkowicz when you ask him about the Spear. As in, BJ Blazkowicz, from Wolfenstein, that had a sequel named Spear of Destiny.

I have the same issue. I won the spearhead then walked around a bit then went back to beat him again and he told me I won the legendary sword but nothing is in my inventory at all. :(

at least someone was paying attention.

it's a crappy rusty sword. it's a joke.

I'm not sayin' it makes sense, but if you read the thread you find that the only way to get the "sword" is to play him continuously until he refuses to play any more.