For me it depends on how seriously I'm playing. If I have a miss it's so tempting to make some quick adjustments and take another shot. Often the result can be another wasted torpedo. If I try to be serious, then I try to avoid detection and re-engage at a later time. I try to evaluate my shooting data to see where I might have made a mistake, or if I'm sure I haven't, consider other variables like torpedo failures and/or the weather.
Typically if I'm playing to what I consider an authentic level, then I'll only give up on a target if it becomes impossible or the risk to my boat doesn't warrant it. I've limited knowledge of typical historical scenarios, but do remember reading an interesting example from a patrol log. Can't remember which boat, but the Kaleun fired 8 torpedos to finally sink the small freighter he was attacking. Of the 8 I think 6 were misses. BDU noted his inaccuracy and advised him to improve, but also praised his determination to not give up. Interesting.
It's really the great thing about SH3 in that you can play it however you want.
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