Exotics will still ascend to year 2, only legendaries are being left behind
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I've not seen them say that exactly but they did say legendarys specificaly would stay behind. I kinda hope you are wrong because I don't want another year of destiny where everyone needs Gally. But it would be nice to still use them.
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http://www.gamespot.com/articles/destiny-wont-let-you-upgrade-your-legendary-gear-f/1100-6429456/
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I was indeed correct
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Yeah. They say probably get rebalanced, it will happen I think but I just hope the Gally isnt a must for all of the bosses.