Faction are a good idea because it allows a player to be part of a team from game start(you're not alone like in other pvp games). It engenders a reason to fight.
In most games one side eventually becomes dominant.Having 3 sides(factions) offers a natural counterweight with two other factions restricting the dominant faction.
Factions in PS2 each have different strengths allowing for a more divers play style.
DAOC ..now over 10 years old (with 3 factions) demonstrates the strength of the concept .
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