I understand why Bungie chose to have only wins count, but as the OP stated if there is no incentive to stay players won't waste their time. The iron banner is the only place I have won by forfeit, because my team was ahead and the other team bailed. I don't blame them, as they would have just wasted their time and ours. If Bungie wants players to actually give their all, there's must be honor in defeat, otherwise they will find a new front in which they can dominate.
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And this is what Bungie must learn. MMO type games like this are a time investment unlike any other genre. People are looking for the most reward for their time and its hard to do that with an RNG loot system and constant patches on exploits that players use. Many MMO devs leave these alone because they add to the game, and like the loot cave, can promote social interaction. The community of any game can melt the original framework and build their own world. WOW, EVE, Dota, and LOL all have glitches that have been adopted into the community as part of the game and therefore aren't patched. Bungie will learn this eventually. I still love their company and their game, but I don't think they were completely prepared for the kind of community that comes out of MMO type games, and the standards that they must now meet.
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The Bungie team has no clue how to build an MMO. I guess they are all kids of army officers who like to punish and despise incentives. The theme of the game is to become a legendary grinder who earns his gear the dumb hard way. It's a video game guys! Bring us content not grinds.
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You do understand? okay, tell us why? What person on Earth would think "hey, let's only give the winning team the rewards which are the only reason why people play this mode" without thinking "Well what about the losing players? Why would they want to stick around if they are losing?"
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They thought it would appeal to the hardcore gamers, and wanted to raise the stakes. When coming up with this game mode they wanted it to be "unforgiving" but didn't think of any bad consequences. We are currently experiencing what the end user result is. Frustrating gameplay, with terrible rewards; the result of shortsighted development that didn't consider the wide implication of the full package.
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I don't see a problem though you still get faction rep.
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If I wanted faction rep I would do normal crucible and not weather the exotic storm.