The game would be dead. This shit is the bane of the average sweaty / try hard because of red bar gods, but the truth is most of the people who play this game still aren't very big PvP people, and bungie isn't about to feed them to the wolves and watch them move on. Sad but true.
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The problem with SBMM is the lag it adds. I am just an average player and I see tons of lags. Radar that doesnt work.... Enemies that dont appear on screen until they have shot me a couple times... etc. So with SBMM instead of skill determining the match... lag does. Is that fun for people?