The answer is layers, shards, and phasing. It allows players to exist in the same "physical" space without being visible to each other.
From the player's perspective no one outside of their fireteam exists, until they enter a public bubble and/or crossroads space.
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You should elaborate... I've been wondering about this also.
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Edited by FairlySplendid: 12/31/2013 4:57:57 AMThere's not really that much to it, at least from our perspective. There's a lot of back-end server and P2P magic happening so that you can literally have thousands of players in the same space, at the same time. All oblivious of each other's existence. You seamlessly enter a small, temporary "micro-server" (shard, bubble, whatever) filled with your fireteam and enemy combatants. When your instance is over, you seamless re-enter the larger server and player-base.