Something that's said often at the Black Desert and TERA forums ( and I believe WoW, though I've never been there ) is that open-world PvP is destroyed by instanced-based PvP. There's lengthy debates on the respective forums stating as such, all with good points and tell-tale signs of its effect on the open-world. Just out of curiosity for those that wish to have open-world PvP on a dedicated server: will this not affect FFXIV after the novelty has worn off? Or, would you ask to remove BG's and Arenas from that server completely so to keep players from "hiding" in instances? In my opinion from what I've seen in TERA earlier this year, from what I've heard being argued over Arenas/BG's in Black Desert, and ex-players from WoW; you'd have to. Otherwise, players will go to those instanced areas for their PvP fix while being safely kept behind a "flag" feature preventing them from being attacked or attack.
Another thing about open-world PvP combined with instance-based PvP, is the rewards. Just from judging the PvE community by itself ( Hunts vs. harder content ), people will flock to the easier option where they'll be rewarded which, in this case is Frontlines as whether you win or lose you get your 50 Myth and 25 Soldiery. Frontlines offers not one, not two, not even three, but four ways to get geared through Myth, Soldiery and Wolf Marks. Then there's also plenty of ways to turn Myth and Wolf Marks into easy Gil. Meaning, that if the rewards from the much more risky open-world PvP isn't as good as what it is in Frontlines, then it's not worth it to go and find people to PvP with outside of towns. This is another reason why I don't believe open-world PvP will do well in FFXIV unless it's quite literally, the only PvP available on a dedicated server or, the rewards are much better than what you could get in Frontlines/Wolve's Den. I don't see Yoshi-P removing WD/FL from a dedicated PvP server. So that leaves the latter as the only way to get people out in the open-world. But even still, unless the rewards are just insanely profitable ( whether it's gear, Myth/Soldiery, etc ) I don't see people doing it that much as it'd probably be faster to just queue in FL versus hunting people down, asking ( referring to a flagging feature as mentioned above ) them if they want to PvP, dying, respawning, and doing it all over again.
There's more things that would have to be taken into consideration, such as the economy of a PvP server that has a low population, and the fact that most PvE is instanced which, would lead to less of a reason to be in the open-world. There's more than that too, but I'm going to bed. lol It just seems like they'd have to do a lot of things to make an open-world PvP server viable with a somewhat decent sized population.
Just my two cents.

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