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The Auto-Generation system (ontop of the modular world system) makes it possible to create a large MMORPG World without having to hand craft it all (which is $$$$ expensive). Templates (generation patterns/rules) will fill in all the finest details tirelessly (programatically) once they are working.
Building the initial game World, developers can add seed data to pre-place certain features (like the City layout streetplan and buildings and the transportation systems, landmarks, etc..). They would then use the Auto-Generation mechanism to fill in further details (as far detailed as needed - as some sections wont be filled-in all the way until Players get near to them).
Some buildings/terrain like those seen in BS1/BS2 (and DLC) would be replicated almost verbatum (after conversion to work with the MMORPGs modular world system). There was quite alot of buildings you passed thru in the solo games, so some of it would be in the central area (Apollo Square vicinity??) and be already fixed up/repaired, and many others further out still be in ruins (or like Persephone largely destroyed/crapped over by 'The Family').
Different locations could be tweaked seperately to adjust things for a certain effect (certain themes) - the 'tweaks' themselves are just scripts that force specific features and those can be generated by Game Editors. The Auto-Generator is a tool that can be run to test ideas, make improvements and then run again til refined sufficiently. Finally, the initial World data would be built to start off the game for the Players.
The parts of the World to be Auto-Generated after the game starts (local details built on-the-fly) can be different on each Server's game World (just allow random factors to build them differently).
A system like this does take a significant amount of testing to make sure it works right (auto-placed jumbles of junk not so bad, but have to watch for 100 of something rediculously valuable being dumped in one place as a bug..). One advantage of a modular script system is that you can add logic/rules into the Templates to check for endcases and remove/correct abberations before they get added to the Servers. Likewise, a running Server's data can be patched for corrections after certain unbalanced things got into the World data.
As I mentioned in the Bioshock Infinite forum about replayability, diverse variations and combinations that make encounters and situations different will be the way to continually give Players something new (and maybe challenging when they have to 'think on their feet'). In A MMORPG, you dont 'replay', but you can go someplace and find something different today and then go back tommorrow and face something else different (no more Disneyland animatronics situations for cheatbook authors to give you exact walkthru instructions).
One thing a system like the one Ive described makes easier to have is GM coordinated 'events'.
It is much easier to control/facilitate enemy NPCs spawns (they are no longer locked into a static World Map) and Props can be added/removed/modified by calling the Templates to 'set the stage'. They can be created in advance and tested before they are put into effect on a Server (Ive seen botched GM events on MMORPGs before). The NPC behavior system means that actors in the Events can run themselves instead of having to be directed explicitly by GM commands (which then are often slow and simplistic). With the ability to have many variations with minor changes, running the same Event again starts to require little extra work (and they can be applied to other Servers just by moving the Event 'scripts' to each.) GM salary costs unfortunately eat into profits (and have been minimized into uselessness by most companies) but at least this system would cut the work needed to facilitate GM run world 'Events' - if there are to be any.
So, Yet another 'Asset' to create via a 'Player Created Asset' system.... Seriously, when game companies start using such a system it will both decrease their production costs $$$ and greatly improve the MMORPG players experience. (Of course none of them are interested in that)