Take an MMOG. Scale it down a bit and distribute the server software so individuals can setup & run their own small scale/private servers. However, require said server to be able to communicate with a central server, i.e. "call home." Traffic should be encrypted to prevent people from spying/spoofing it, and the inability for a server to call home
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I'm more focused on the idea of a truly dynamic world. Where actions by players have persistent effects in the game world. Given how Guild Wars handles it's pve content, that's arguably possible, but I think well outside the scope of it's design.
Also, it would be hard to reconcile differing "world states" among players who've done things differently.
If you're dealing with a small privately operated server a la Neverwinter Nights, you have much more freedom in that regard.
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