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Unreal Engine 3 (UDK) works the same way, part of the asset import process is to specify exactly how you're going to use that asset and what fidelity you want out of it, how precise the transparency should be and what quality and LOD settings it should use and so on, the engine wants to compress the asset into a new file and discard the original so it needs to decide how to best optimize it for size/quality.
Here goes... Everything wrong with the System Shock Demo (2016):Excess bloom usageExcess reflectivityExcess saturated lighting (colored lighting should be subtle for main lights)Poor lighting contrastHideous inventory (white squares?), I know it's temporary (let's hope!)Inventory blocks viewInventory blurrs viewInventory is too large (same complaint as original game, oops!)Inventory is missing slots for 5 more weapons (7 total)Object info text is too small in the inventoryMovement restricting handrails everywhereLadder climbing takes away controlLadder climbing prevents shooting while on laddersLadder handrails are excessively largeRepair bot scale is a little too smallDoors can only be used by tiny buttons instead of whole doorTiny fiddly usage of keypadsTiny fiddly usage of puzzle panelsTiny fiddly buttonsSparqbeam sounds awfulSparqbeam beam is too largeSparqbeam effects are too flashySparqbeam gives no indication of cooldown for overheatingSparqbeam only has two settings of intensityPipe swing is like molasses, even slower than originalServbot attack distance for short arm swings seems too longServbot doesn't fall overLocational damage difference for humanoid mutant (head hits hurt it more)Getting hurt creates random rectangles/squares on the screen, what kind of cheap hardware is this cybernetic interface anyway, can't take a little bump? Crates look generic and nothing like original cratesGore is a tad excessive, M rating instead of T, severely restricted target audienceToo much horror theme elements, not enough cyber punk elementsViolin music is just wierd, cliche creepyHead bob is excessiveNo prone (can of worms...opened!)Generic looking main menuTitle font not very cyberpunkPoint filtering on textures conflicts with styleFall damage occurs at too low a heightHorrible control stealing sluggish out of character item pickup animationsSluggish weapon switchingMuffled Rebecca Lansing emailUnnecessary, character-altering changes to critical-to-story dialogueThe System Analyzer DOES NOT MONITOR BIOMETRICS!! that would be the Biological Systems Monitor, System Analyzer tells you station status Everything right with System Shock Demo (2016):Nice note added to cryogenic incubator screen "Please Proceed to Reception to collect your personal belongings and check out"Hovering over an object shows description text that is also randomized.Attempting to use an unuseable object shows a randomized response yet with specific responses for particular objects (shelves, lights, etc).The light fixtures are neat having a layer of glass in front of the bulb.Can put objects back in cratesLeaningThe station is rotating (or at least the skybox is)Other parts of the station are visible through the windowSaturn is visible through the windowThe sun is visible through the windowThe sun casts shadows through the window that move as the station rotates...questionable that it would be that bright at that distance thoughFall damage existsSparqbeam overheatsSparqbeam has adjustable setting (albeit only 2)It Runs (not very stable though, pre-alpha no faults there)It's a startI'm sure there's more but I figured this was a long enough laundry list of items Night Dive can improve on. I hope they can continue to improve on what they have and make a great game, in spite of some perhaps poor decisions as all of you have been discussing so fervently. This is just a pre-alpha demo after all. I'm willing to cut Night Dive some slack even though I may be the biggest old-schooler and purist on here.P.S. Gawain, they just made several hundered thousand on Kickstarter over the past couple days so yes I'm sure they will upgrade to the professional edition of Unity 5.