I know that when I play I will be on a North America server, but are they sub localized as well? For instance, I live in central Wisconsin. When I meet random people in the tower, are they in WI as well?
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There aren't any servers. Destiny is p2p. There's a central server that hands out rewards and holds your savegame, but nothing time-critical. This is trivially demonstrated by considering the Crota kneeling bug. If Crota were being run on a central server, all pulling the cable out would do would be to paralyse you. Because Crota was, in fact, being run by your machine, pulling the cable made the game failover to another machine in the fireteam, and a bug in the failingover made Crota not get back up again.