A lot of stuff I got in the beta by killing something and running over it. I think it would add an interesting dynamic if those items could be lost the same way. Maybe if your not revived and a npc crosses your revive. Things you earn rather than randomly find should stay with you. Suggestions?
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Could take the borderlands/defiance approach (lose money every time you respawn). It's simple and can make dying a lot very frustrating. I'm all for making death a bad thing but loss of gear seems a bit much.