I'm also speaking in the context of 2013 when ARR was launched. 50GB was annoying for a single game back then, at least for me, so deciding that FFXIV should somehow exceed that limit by having textures quadruple of what the base game offered, same with 3D models, was a big ask at that time. Storage is a non-issue nowadays for most of us, but it was still a consideration back in 2013.
Square still has to develop the game and subsequent patches around the minimum spec whether we like it or not. Any new feature, asset, etc. has to be QA'd for that reason, and so whether we like it or not, we're limited by that. Just because we can put in a bunch of objects in a zone for high end PCs doesn't mean a low end PC will handle it, and while we could just hide those objects in the zone, that now creates discrepancies; what happens when a player jumps on a barrel that exists on their screen, but not on yours? Does that character float on the low end PC? Does that barrel just not have collision on the high end PC for player position parity? How does this affect gameplay in any way? Does it offer an advantage to hide in the barrels so people choose the competitive advantage of low graphics? Well that sucks for those that want better graphics. Do we just make the barrels into cubes because of the low end PC? Well that still has an impact on the memory more than not having it, as an object in memory is an object in memory, so that now affects whether or not that player may even be able to play unless he adds more memory to his system.
Graphics options only go so far before we decide that it's better to just up the requirements before making the assets higher quality. Which is what the graphics update is doing.
(Yes I know hiding in barrels won't be a thing, but my point is how you handle discrepancies between different graphic options that may have other problems associated with them.)


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The PS4-GPU is roughly equivalent to a RTX 1060 or Radeon RX 590. And those GPUs have no problems with highres textures.



