The gear treadmill isn't the problem. I'm fine with ilvl increasing over time. The main problem is that there isn't anything to do with gear once you have it. It's just gearing for the sake of gearing.
A new patch releases. You buy/craft crafted gear, which completely invalidates all of your previous progression in a matter of seconds. You meld it. Done. Go do savage. Anything beyond that just makes the content trivial and doesn't serve any purpose other than parsing for the next 4 months.
In other MMOs, like FFXI or WoW, getting gear upgrades means that you're able to push into new content, which means you can get better gear, which means you can push into new content, which means you can get new gear, repeat. Progression actually exists. Gear has a purpose.
I think gearing in FFXIV would be much more interesting if, for example, when a new expansion releases, the best gear that we have access to immediately is dungeon gear from the highest level dungeons, then we use that to get the extreme weapon and accessories, then we use that ex gear to do savage, then we use savage/tome gear to do ultimate. It would be nice if we had something (like criterion/chaotic) in the 4 months between savage and ultimate, where we could take our savage/tome gear to get a few more pieces that we would need in order to do ultimate too.
When the next tier is released, crafted gear should not be better than previous BiS. Where other games have catch up gear, FFXIV has gear that fast tracks you to the end of the process.
If people are worried about crafting becoming useless, they could do something similar to what FFXI does and add some expert level crafts that are BiS items. The recipes for those could be added fairly late in the progression cycle. Your BiS for ultimate could be savage/tome/criterion/chaotic gear with a couple of crafted pieces that are very hard to craft, and the current crafted gear could still exist as catch-up gear.



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