I'd not really say it's the devs that backed themselves into a corner so much as the players will always take the more effective route. 2.x saw F.A.T.E.s as the absolute best way to gain EXP outside of the MSQ. Back when you could farm the adds in that one F.A.T.E. in Northern Thanalan and get a chain bonus of 400+ easy. F.A.T.E.s worked back then. However, since those days, more story quests have come out, as well as dungeons, with a need to always have players fill them for the newer players. This by default shifts the focus away from open world to instances. Just like now, as much as I hate Eureka, I feel it's the most effective to farm tomestones for the amount of work required (would normally say this goes to the two newest dungeons because of 50 tomestones a run, but some parties really cause me to work).
The F.A.T.E. system isn't bad (let me clarify this; having a system that has an indicator of a spontaneous open world event on the map where everyone can participate because of level syncing), but that's not to say people have grown to despise them because of the sheer RNG behind the relic's atma and crystal grinds in ARR and HW. Players don't generally bother with content if there is no incentive behind it and F.A.T.E.s have always been a way to grind for EXP (which has since been shifted to other sources), tied to relic (again, shifted to other sources) and otherwise simply have no incentive. Even with the special enemies that pop up that reward increased EXP.
The 'true game' being what?
A lot of MMOs are mostly dungeons being the content. Open world gets used for open world PvP (does not exist in FFXIV), gathering for crafting, crafting and quests. That's how it is for theme park MMOs, which FFXIV is.



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