I think some issues have to do with the engine while others are design flaws that would've occurred regardless of whether resources were pooled into graphics. For example, the effects a disconnect has on how the game works can be horrible ex: A fully buffed 3-4k guildmark leve disconnect will net you a total of 0 guildmarks if you disconnect in the middle of the leve. I think this is true even if you are in a party as the rewards aren't given until completion of the leve. Redesigning the rules in how that works could greatly reduce the frustration that coincides with failing leves due to the game. They've also recently commented that they've discovered why characters stay "logged in" even after they've been disconnected for up to 15 minutes. Yet, the question remains, if more resources were pooled into programming rather than graphics would we have a smoother experience?
There were many complaints during closed/open beta that were not listened too and many players were vastly disappointed at launch. Tanaka, at the time, had stated that open beta was mainly for fixing bugs and that's the majority of what they were doing instead of fixing foundational design concepts that people disagreed with. This frustrated a lot of people and rightfully so. If I'm not mistaken XIII used the same engine and there was a great deal of criticism of the core gameplay of that as well.
When it comes down to design concepts and how the game actually plays, I don't think it's a graphical issue.
When it comes down to how smooth the game runs (transferring items form PC to retainer or selling items) and the frequency of disconnects I think that may be a side effect of the crystal tools engine.
Before the optimizations in 1.15 or 1.16 I don't think I would've stayed with this game at all. It seemed like it was abundantly clear that they were literally trying to waste your time with how slow basic actions like opening the menu and equipping gear took. After they optimized that the game became playable, but nowhere near pay worthy and I think the majority of problems with the game today are content/design related. Then again, some things like linkshell management options have been blamed on the programming foundations which they're reworking for release in 1.19.
So it looks like they can fix the problems even without scrapping the Crystal Tools engine. Whether or not they should've used Crystal Tools in the first place is a whole different story but I'd chock it up to either a rushed release or a slow dev team leading up to September 20, 2010. I mean, Rapture was first seen in August of 05'. That's five years. A kid could've started college and graduated with a bachelors in computer science while taking a year off to go backpacking through Europe or something in that time. 5 years, under old gaming industry standards, you'd be playing with next gen hardware. The current generation has extended that to 10 but we're already halfway through.


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