I hope that it goes futher and not friend zone only , whats the point in that haha, we have retainers, and squadruns etc we have enough friends should get a deeper relationship.
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(Sorry, couldn't resist... >.>)
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It was part of the 3.55a patch notice in the last live letter.
The system is introduced in 3.55a for basic functions to build some early rep with NPCs and later in 4.0 and beyond expanded on. It is mostly a crafter/gathering Job focus system but more NPCs and the ability to customize them with your own crafted stuff will be added later sometime around 4.0 or beyond.
The only part they need to add for the Waifu dream assuming SE introduce NPCs of all kinds considering each will have their own story to tell.
"You get to chat up a character in order to force him or her to dress in what you want. Don't worry, they've only ever been game objects."
I am unsure about this feature, I'm sure many of us have played WoW, we remember the hell of weekly rep grinds to gain the favor of factions for access to restricted gear sets, mounts and other things. The non rewarding nature of FFXIV does not lend itself to rep grinds easily. But it will give me something to do besides log in and share my sparkling personality with the internet world so bring it on.
They didn't say you could dress them the way you want. They said that the items they request and you make for them will show up such as them wearing gear you make for them. Lets say your helping a guy who is trying to start a café. He asks you for some waiter clothes. You make him some waiter clothes. Later on when your rep increases you notice he is now wearing the waiter clothes he asked you for.
It will be like that.