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Playing campaign mode I got a ship "Upgrade" for 2000 credits. Now I got a game over, and "Upgrade" is available for 2000 credits again. Looking at the shop, items like Extra Life cost as much as Power Ups.

Do power ups only last one life? One Game Over? Or do I keep them? I'm not sure if I kept my ship upgrade or not.

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All items purchased via the Store menu are lost upon a game over. These are Power Ups, Bombs and Extra Lives. Also, power ups seem to expire after a time limit as well, not just when you die.

Upgrades purchased through the Upgrade/Manage menus are permanent upgrades for the ship type you're using, you never lose them. You should max out your upgrades before buying power ups and extra ships as Upgrades are relatively cheap for significant benefit.

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