They don't do enough damage to be viable, plain and simple.
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I've heard this complaint a lot, and I think pulse rifles aren't very competitive either. Though just saying they don't do enough damage isn't looking at the reasons why pulse rifles feel weak. The impact on some pulse rifles is actually quite strong. I mean 2 bursts to the head can kill someone if you're using something like the super pox or three little words. That's pretty crazy. Pulse rifles are just slow, and unwieldy compared to something like a auto rifle or scout rifle. Small magazine sizes, slow reloads, long delays between bursts, and a crucial need to get all headshots if you want that 2-3 burst kill or else it could take you 4-5 bursts which is 12-15 bullets (usually half the magazine). If they received a buff that increased reload speeds, shorter delays between bursts, and a larger magazine then pulse rifles would feel much stronger without even having to touch impact.