You can still have bad party set up. People need to AFK. Many things to run a timer up and backlog a server, even with data stretched across other servers. I wouldn't want to be in any dungeon for more than 3 hours. Some are lengthy enough as is, allowing prolonged to indefinite play is horrible
There are three specific DCUO events that can last for over 24 hours because the party doesn't know what to do. Even with proper time to plan the party would fail time and again to pass those specific points. The most noteable one Inner Sanctum. You get locked at two points, one where you have to fight the Robot boss near the beginning. This is the part I've never gotten past myself on any team I was with. The other part of Inner Sanctum is the actual Brother Eye Fight which was the first time I've seen a Raid with over 24 hours in progress.
As for on FFXIV, I've personally failed 4 Duties due to bad party set up. It is indeed possible. First time I've ever timed out was in Stone of Vigil. We couldn't even get to the final boss. We kept losing at the point where you have the final boss shooting ice blasts at you while fighting off one of his mini boss dragons. I ran DPS and the healer could not dish out enough healing to keep everyone alive even with us using the cannons to keep the other dragon away. We all died to tornadoes. Second time I timed out was Aurum Veil. Couldn't get past the coin counter due to him not having a targeting display. I was the only new player running that dungeon. Tank and the Monk couldn't dodge the eye beam, and the Healer was always in Cleric stance. Third time was Demzem Darkhold. We got to the final boss and timed out.
The fourth time was close to timing out. Horrible party make up, our trouble was with a "Vet" Player that had never done the dungeon before. Were running Amdapor Keep, the healer kept dropping the purple pulsating orbs right on top of where we were fighting the boss. We did that fight 8 times before beating it with only 2 mins left. We were saved by a Bard and her Paladin friend. Everyone else that joined in quit because of the healer. We went through 3 tanks and 5 other DPS members. It took nearly the entire 90 mins to do. That was the slowest I've ever ran that dungeon. Horrible party make up is still an issue. Bad players can slow a team down and no matter how much planning you put into it, they will still ruin everything.
I don't know where the locking out from the dungeons completely comes it because I've ran the same dungeon side by side three other people, we were all in different parties. I called in two people to help me with a dungeon trouble a fellow in my FC was having. We thought we'd all end up in his dungeon since his entire party bailed, and all three of us ended up in the dungeon in three different parties. Not one of us were with my FC member. Multiple versions of the same dungeon don't block, but I still do not want to enter into an already started dungeon that has been running for over 3 to 4 hours. We're given more than enough time in all the dungeons to properly set out a plan and talk about changes to the plan should we fail. Ever good dungeon encounter I've had we've done this. We'd finish with more than 20 mins left every time. We have more than enough time to test out a fight, die, and change our strategy for that fight.
Its not detrimental to have the timer. I greatly prefer it the way it is. So does the friends that came over with me from DCUO because of all the headaches we've had with all the instanced fights we've had on there for Raids and Duties.

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