TLDR: It’s an old area and mode based on an old design ethos that isn’t very appealing anymore to most people. I don’t think there’s much of a way to salvage it at this point, though I appreciate ZOS trying. It’s never going to be popular again.
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I thought I’d chime in with my two cents about PVP Cyrodiil for the fun of it.
Vengeance is a clear effort to turn PVP Cyrodiil around and I appreciate it, but I think… I think the core problem is that PVP Cyrodiil is just really an antiquated mode, on a fundamental level. A goodly number of the original developers came over from Mythic’s Dark Age of Camelot, which had three factions with their own exclusive PVE zones. Said factions would eventually feud in a common PVP zone, taking bases and doing stuff against each other for points and giggles. Okey dok.
Sound familiar? That was this game. Instead of Albion, Hibernia, and Midgard… we got Daggerfall Covenant, Aldmeri Dominion, and Ebonheart Pact. Instead of fighting over the New Frontiers, players fought over the Imperial Heartland. ESO began its life as a logical follow-up to Dark Age of Camelot, and that was fine in 2014. Made sense.
But things have moved on. Even this game has moved on. The artificial faction divides between players were dropped in 2016 (which was 100% the right decision). Most new zones post-Craglorn are faction-agnostic, with the Three Banners War increasingly treated like some weird fluke happening far off in a distant land. Outside of the original base game zones, I don’t ever see the factions murdering each other, enslaving each other, and land-grabbing each other. Because it doesn’t matter anymore. Core zone content has moved on.
The lore has changed, too. For the better, mind you. The goofy, clearly shoehorned factions have been changed to political marriages of convenience, which most of Tamriel avoided joining.
Ex: Only The Rift and Eastmarch bothered enlisting in the Ebonheart Pact, mainly to boost the clout of the Skald King. The other Nords want NOTHING to do with his Imperial ambitions and despise his encroachments on their lands and authority. The only Argonians to join up were the ones in Shadowfen, for whom it was the only way to get out from under Dunmer occupation and enslavement. The Argonians in the rest of Black Marsh either joined up with someone else (Blackwood), are too far away to be effectively roped into anything by Mournhold (Murkmire), or are staunch isolationists in backwaters so remote that none of it matters. Meanwhile, both House Telvanni and House Dres of the Dunmer opted out on the Dunmer-side. House Redoran has offered some support, but probably because their core heartlands are surrounded by the Pact on all sides and they don’t want to be crushed. They’re not happy.
AWESOME. The faction has gone from an incomprehensibly gooberish joke to a lucid political machination. House Hlaalu and House Indoril making power plays alongside the Skald King. If they can make him emperor (and they NEED an easily-manipulated human emperor figurehead, because none of the human races would accept a mer as their sovereign after the Ayleid fiasco), he will be their ticket to awesome trade deals, greater influence, and military support against the other houses. Works out for him, too. He’ll be able to assert greater authority over the rest of Skyrim and stoke his ego on a Ruby Throne. Great. The freed Argonian slaves are really just along for the ride as extra meat for the grinder. They know how things are probably gonna go for them after the war (poorly), but they don’t have an out yet and have to play along while looking for an off-ramp (Keshu’s “off-ramp” was Gideon).
Much better! This is great, nuanced writing. I love it. But if there isn't any new lore or story propping up PVP Cyrodiil and most zones either ignore it or treat it like a silly squabble (that can be easily set aside for Fellowships and mutually beneficial anti-Daedra initiatives), then why bother engaging in it? Because the gameplay is fun and the battle-zone is interesting?
Okay, except neither is really the case. The battle-zone is a predominantly empty, sparsely detailed, bland map that makes you run 5+ minutes from copy-and-pasted fort to copy-and-pasted fort while listening to the sleepiest music that I’ve heard for a PVP zone. It has long stretches of NOTHING happening and, when something does happen, God help you if you die without a player camp nearby. If you do, you’ve gotta run five minutes to get back to the fight.
It's clearly a known problem, because Major Gallop is SUPER easy to get in the PVP line to help with the tedium. But that’s a band-aid on an overly large, empty map… which has to be empty to avoid a slide-show performance. Oh, and you WILL be dying a lot, because PVP Cyrodiil is brutally obtuse and has a steep learning curve. Good luck figuring out a viable build on your own, and most guides are so old that they aren’t going to help you.
Vengeance REALLY helps mitigate the learning curve, sure, and that’s a big step in the right direction. But the map is still empty copy-and-paste misery with sleepy music. It’s not fun. It’s not visually interesting or compelling. It wasn’t really any of those things in 2014, either, and there are a lot of better options for pvp out there. Also, the few people still engaged in PVP Cyrodiil are Stockholm-syndromed into the current set-up and LIKE IT. They don’t want it to change. It’s a relic that they’ve grown very fond of and they’d probably leave if you gutted it. Then what? Will enough people flood in to play Vengeance to make up for the population loss? Maybe, but I kind of doubt it. People that like large-scale battles are playing Chivalry 2 or Battlefield 6 or Fortnite. They’re not going to come here, especially for sleepy Cyrodiil.
Truth be told, I think PVP Cyrodiil is just FUBARed. I think there are too many things going against it. If it were me, I’d dump it. Sunk cost it. I’d keep the Vengeance system with its fixed loadouts and classes for PVP, because it works. It’s industry-standard stuff that is easier to balance and fine-tune. Also, it distinctly separates PVE balancing from PVP balancing, which is a god-send. Then I’d build new battle-zones that were less dull. Make pockets of conflict for the throne that were more like Battlefield / Chivalry maps. Shamelessly copy what works from elsewhere.
PVP Cyrodiil is a relic in many, many ways… and I don’t think you can retrofit it into a success at this point.