Well to be fair they did it for the Dreamcast, Xbox and Gamecube Versions so it's not really an issue. The thing is even tho the servers were global, JPs stayed on their servers more and NAs stayed on theirs even tho they could cross over.
It was like looking at a fence you could easily jump over but didn't want to because you felt comfortable on your side.
This is something I agree with 100%. I am totally for server side character data because it would literally prevent people from hacking gear/level/mags/whatever.
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