At this point it's pretty hard to argue that any restrictions in the game are due to PS4 specs, when until relatively recently it ran on the archaic PS3. There are almost certainly still PS3 related limitations kicking around, but the PS4 is more powerful than the PC I play on (faster CPU, faster GPU, same RAM without Windows overhead). So you'd be closer to the mark if you blamed my PC than the PS4.
Housing is a backend issue, not a client one. Because each ward is running all the time (even if nobody is in it) there is server resource cost to having more of them. Making the existing ones larger would require map redesign and carry significant cost that way. Fully instanced housing would be a new system, because there isn't one that has an outside (apartments are effectively instanced housing interiors).



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The issue with instancing wards that I can see is that they're so large and they'd have to spin up anytime anyone teleports to their house, or logs in at their house, as you appear outside (in the ward). If you have to spin up an entire ward often enough, then shut it down and persist it, then spin it up again, it could wind up being worse than leaving it in memory all the time. Instance startup/shutdown isn't free in terms of server utilization either.

