Materia Tier I and II are Junk Items.

[Altanas]

At the moment some tier 1 feel like junk, although others like magic crit potency you do see +20 on a tier 1 now and again which is welcome.

I assume if materia could be upgraded that this would make the lower tiers more expensive as they would be in demand? or perhaps in turn stablise the prices of tier 3 and 4 bringing them down a notch? The whole system is prohibitive because of the price of higher tier materia. Its made even worse by the fact gear can break.

An alternative suggestion would be to allow a player to combine a tier 1 & 4, or a tier 2 & 3 together to get a beefed up materia. That would take some of the melding risk away in that the risk is associated with materia alone and not gear. It would near guarantee a sale of tier 1 and tier 2 as no one would use a tier 4 and 3 alone when they have the option to beef it up (just a little bit) with a tier 1 and 2 before melding.

[Sylkis]

If you meld a low tier materia first , then the chances of successfully melding more increases
there is no need for a way to combine low tier materia - they are just as useful as high tier.
shopped or not, some inspiration:

(item not mine)

this is equivalent to about 3 IV materia.

[Majidah]

They are junk items because the leveling curve is a god damned joke and no one spends enough time with the same equipment at low levels to bother with them.

[Renshi]

It's funny, because there's a penis in that image.

Anyway!
I wouldn't say low tiers are junk. If I'm L15 and want a good weapon for when I'll be L18 to do Shposhae, I can meld my weapons and make them stronger for the adventure. That's if you don't care about progression but only at the only purpose to have fun.
Other than that, yeah, that would be kinda cool =)
Having the possibility to merge two Materie even of different type to put out another one... That could give space to new Materie in the future.

[Xquiel]

If you meld a low tier materia first , then the chances of successfully melding more increases
there is no need for a way to combine low tier materia - they are just as useful as high tier.
shopped or not, some inspiration:

(item not mine)

this is equivalent to about 3 IV materia.

Looks risky, but omg 33MIND + 47MP!

I saw what they do there! :x

[Sylkis]

It's funny, because there's a penis in that image.

Anyway!

I would have never seen it if you hadn't said it. Thought it was a wrench. There was another image from the same guy with 3 III and 2 IV, but that looked shopped

[Delsus]

It's funny, because there's a penis in that image.

Only you would notice that renshi, only you.

[Renshi]

Only you would notice that renshi, only you.

Not my fault if you're blind =)