Simply;
1.0 had better textures overall, but used a beastly amount of resources to run which was its big downfall.
2.0 is optimised to run on a standard set of computers, this way more people can access the game, unlike its predecessor.
Each un-necessary area was compressed or 'reduced' if it wasn't seen often or never seen in great detail, to afford more breathing room for development.
It's as simple as that, the developers decided it was best to have a game everyone could access and THEN build ontop of and adjust the graphics afterwards for PC's more capable with a seperate DX11 client.
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It's planned for release February 2014, along with the PS4 'testing phase' for FFXIV:ARR.
It was VERY easy to find this information on all the various interviews Yoshi-P has discussed this about.
http://www.novacrystallis.com/2013/0...naoki-yoshida/Nova Crystallis: You mentioned before that the next milestone after launch is the implementation of DirectX 11 support. How is this going to work with the standard client?
Yoshida: First of all for DirectX 11, we’ll probably ask the players to download a separate client as it’s a totally different technology.
http://www.bluegartr.com/threads/117...lm-Reborn-FAQsWhen will a DirectX 11 version be released?
An update for players who wish to use a more graphically rich game client that utilizes DirectX 11 will be released sometime in 2014 according to Producer/Director Naoki Yoshida.
http://www.dualshockers.com/2013/06/...nced-and-more/The team is going to work on the DirectX 11 client for PC together with with the PS4 version, so it will be released in early 2014 as well.

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