Pretty self explanatory from the video, engram will only give there rated value, and never above. Rares are always rares, legendary's are always legendary's. I have never gotten a legendary out of a rare since 1.0.2.
Video, 30 rare engrams = all rare. 1 legendary engram = 1 legendary.
Would be reeaaaallll damn handy if this can get fixed so I don't need to buy all my gear.
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I've been keeping statistics on decrypting since the patch. I've gotten 9 Legendaries, 17 Strange coins and 54 Motes of Light out of 515 rare engrams.