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Ok. I've played every day since Morrowind lauched. Both inside Morrowind and base game. I swear there are less nodes than there use to be. Maybe because of population increase? Just saying that I feel like I'm seeing less nodes.
Its all the people. First one to the node gets it and all that. When the herd thins out, you should see more.
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I haven't noticed anything. But the density does vary a lot according to zone and to areas within a zone. Some zones are also more popular than others resulting in more frequent node harvesting and thus a lower apparent density. Good zones to farm base materials are the starter islands which have higher density of nodes and some of the alliance areas - Rivenspire seems to have a lot of clothing nodes for some reason.
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Same thing was brought up on PTS and the same response was given that it is because it is so crowded. Unfortunately after a couple of weeks went by and the PTS emptied, the density was still the same
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I'm pretty sure the general amount of nodes in a zone remains roughly consistent regardless of size, which is why the starter islands appear to have so many - same amount of nodes, smaller amount of space. With Vvardenfell it would appear to be the opposite.
I've been up and down the western coast looking for a single damn fish, and not a soul in sight other than my fishing buddy - the amount of nodes was pretty meh.
I couldn't go 5 feet last night in Vvardenfell without tripping over a node. I'm thinking it just depends on where people are. The more people there, the less nodes you will see.
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I was in some out of the way areas in Vvardenfell last night and there were nodes in abundance. I suspect you are running into a situation where someone else grabbed the node before you in busy areas. Try out of the way areas off the main roads.