Half true.
What is needed is to make it less of an ordeal to "permanently" switch servers and DC's. If I move to X server from Y server, that should take ME, my retainers, and all my money/tomes/gear/etc to that server without question. This should be as easy as "data center server" transfer is now.
However you realize why this is, is because the retainer system would completely destabilize server economies. All the crafters would just jump server to stripmine the economy of smaller servers, and people would have to jump around servers to price shop, which is the problem 1.0 had with having to manually check every place and retainer.
Perhaps that can be solved too, by making the market actually global. It would make purchasing things VERY much slower, but then you wouldn't have to jump servers to do any of it. However that would in fact make it impossible to be a new crafter in the game as all the materials would then be horded, or players would engage in a lot of price arbitration, making leveling crafting much harder.
Honestly the ideal situation is to just nuke the party finder. Replace it with a priority chain, where the game uses your friend list, linkshells, and free company, and "previous recommended players today" to decide how to form the party, and if you want a private party, set a password on your party. If nobody has "I want to do (DUTY)" set, then it considers PUG's from those queued to those duties, and then the roulette. The main problem with PF right now is that it's mostly filled with spam, so people don't use it.
There should be no incentive to switch data centers or servers unless that's where people want to be in a FC. Unfortunately certain servers on certain DC's get known as the "big hangout" server for a certain thing and players don't want to move because moving their house isn't possible.
So between the housing system and the retainers, that's why people can't freely/permanently change servers. The fixes to both of those is not straight forward without changing how both of those work. Perhaps the correct fix to that is to change how housing works in the first place and only allow the retainers to be summoned in your house or inn room that operates as a "out-of-server" instance. The outside of the house still exists on it's home server, but the inside can be accessed from any "inn" on any server then. You can't summon your retainers outside your home unless you're on your home server.
At any rate, the other way to solve, everything, is to just create dynamic instances inside one virtual "game" server. So all players in non-combat areas are in the same instance until that instance is full, and then it forks another instance, and this gets reset every maintenance. In combat areas, the instances would instead be handed out by latency to all players in that instance. So players with sub-10ms to each other get priority, then sub-32, 64, 96. This would automatically stick players in the same party in the same instance, but would prioritize players in each instance by their geographic routing table essentially. Players playing on poor connections (eg starlink, dial up) end up at the bottom and dropped onto whatever instance is lowest for them.
Ultimately I don't think there's a lot of good solutions that don't involve erasing the boundaries between the servers.



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