Oh - that would account for why we need everyone, and people would choose factions based on their style of play. Yea, that sounds more like it, but I hope theres more than just like elf v dwarf b.s. in other games.
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If it's there I'm sure it will be very loose and primarily cosmetic. Unless people can create multiple characters or freely change factions. They don't want to force people into anything, not good for the life cycle of the game.