PvE, tagging multiple enemies will increase reload speed so as long as you hit a handful, 3/4+, should be relatively unchanged.
PvP with infinite ammo it would be a problem as is. The change will encourage use as intended; get into a cadence of tag with Lion, clean up with kinetic, Lion is auto-reloaded for next engagement. Supplement play-style with Dragon's Shadow, Ophidian Aspect or perks like Inertia Override.
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just want to point one thing out for PvE, they are decreasing the blast radius for GLs, doesn't that mean it will be harder to hit multiple enemies with a single grenade shot and do good damage?
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This is all true. It'll do more damage now, but it looks like direct impacts are gonna be the name of the game now.
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They are reducing the blast radius yes, but it's not as big a change as people may think. To compensate, explosion damage on breach launchers will be buffed a bit. And bear in mind, Lion is and always has been a primary weapon, so big damage isn't its strong point. Clearing small groups of enemies is where it shines, but a special breach should be better for this.