Sure, a lot of them look the same at level 8, but I've seen some pretty outlandish exotic weapons that people have picked up from the cryptarch, not just recolors of the same basic format. I doubt that the selection will be as limited as it has been in the beta.
What I'm wondering is will level 20 be the ultimate cap, as that seems a bit low in a game that I had assumed would be significantly larger than a game like Borderlands 2.
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i seem to only get pistols for my primary weapon from the crytarch
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I picked up a few legendaries from him, and once I hit level 5 I got a type of blue engram that I hadn't seen drop in the game until then (you get a message from the postmaster as soon as you hit 5). Some people who picked up exotics had been farming glimmer, then going back to him and buying engrams over and over to boost the level.
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so the higher your level with him, the more the chance for you to get something good from him? or is it just random no matter what level?
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I think the odds of getting something good go up, and rarer engrams require a higher level to decode, but there is still a level of randomness to what you ultimately unlock.
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There is a stat called "light" (look at the legendary armies the New Monarchy has) that increases your level beyond the cap. The legendary pieces available to view show +18 light per item so you can do the math on what level that makes you.