re: SBMM: what's the big issue with this for you guys?

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It's just the worst.
There are a number of issues with it.

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Na. They work, But I do think when it matters actually has a lot to do with the size of the game. Communities like LoL and Overwatch end of up being problematic because one bad player can really hamper a team, or one good player can completely ruin a fair and balanced match. The more players, the less it really matters. Like Bigger Halo sessions, or even sieges in games like Guild Wars.

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The main thing is matchmaking for casual playlist should always prioritize connections. Once you start reaching out farther and farther to reach your skill based requirements this is jeopardized. You don't get the best connection period.

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Games should prioritize fun if that's the aim. People can (and some seek to actually actively) ruin fun.

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Another big gripe I personally have with it, is how it effects groups. If you are a casual player and you group with a higher skill friend, you will have a tough time. Instead of the lobby being random and casual as it should be. This causes friends not to even want to play with certain friends.

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Most games handle this one pretty well. Smite's ranking system when teaming up is pretty solid. So was Guild Wars.

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If you are highly skilled you have to sweat every game and that is frustrating.

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Which is the opposite problem for the unskilled. It's frustrating to be playing casual and see a string of 16 losses, when you're just looking for a fair match that is winnable.

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It's fun to do well in a game that you learned to play, instead of just playing the next wall.

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Does the fun matter for someone less skilled, or no?

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Less improvement for new players as they are basically playing another game.

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I'd say this is true for only really high-skill cap games, and most games don't fall into this bucket.

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But it is here to stay. The lower skill bracket of players is what makes them more money because of sheer numbers. And by protecting those players, they retain more of them. More players is more money.

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I mean, I THINK we've all been on both sides. I've been elite - Enemy Territory, early LoL, Guild Wars, Smite, Team Fortress 1/2, Smash/Splatoon. I've been average - Overwatch, Rainbow Six, later LoL, Titanfall, Fifa, Quake. And I've been shite - CSGO, Any strategy game, Halo, Rocket League.

In all three scenarios, unless I was chasing rank, I was looking for fair, relatively even matched matches that were challenging "good" I was. Casual modes without any ranking are system and I was elite - things like Enemy Territory where I could routinely crush anyone, were boring and I had to find a consistent group to play with. It sneaks through in something like Smite, but they mostly do a good job. LoL became just annoying as my skill dropped and rankings were harder. Great players can completely destroy the fun of a map in that game. And when you get a string of those, even 3 or 4 in a 45-60 min. LoL match, that kills any want to play.