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It's not hard to figure out. PvE people will finish the game and move onto the next game. PvP people will give the game staying power and keep playing long after they finish all the PvE encounters that are available.
Hardcore PVP is a niche - there is a reason PVP is so stripped down in this game. Fromsoftware doesn't care about it staying active 6 months after release, they aren't making money off the online side of things.
An analogy: you're running a cafe. Person A and person B order a coffee each morning. Person A orders hers to go, pays for it, then gets out as quickly as possible. On the other hand, Person B always sits, plugs in his laptop, and begins draining your power, using your wifi, and occupying a table all morning. Both people paid the same price for a single coffee, but person B is more of a fixture in your cafe. Who do you value more?
I guess I just don't see the inherent value of PVP. Like PVE players, PVP players will also eventually move on to the next thing. It'll take longer, and I'm not sure why taking longer is supposed to be a positive.
How about this simple reason: they keep promoting the game. Some just by talking in their friends and family into the game, some, like pvp oriented content creators, their audience made of tens or hundreds of thousands people. It's like an (almost) free huge channel of advertising for the creators. It baffles me seeing you arguing so stubbornly and failing to realize a simple fact. Unless of course you are a half successful troll.
Elden Ring pvp is bad. If something is bad then it's bad. Why play this game's bad pvp when I can just go play for honor and get a better pvp experience?
I don't think this update is really any surpise, Everyone was guessing that some form of pvp collosium update would come.
It does suck tho that after almost a year, The only major update we're getting is just basically letting people fight inside a closed off area. Something like this would of been better included WITH an expansion then stand alone.
"Everybody knows" and "I think you're a troll" are not reasons why anything is true. Even person B probably justifies his presence in the cafe by rationalising that he is making it seem successful and thus driving up business (and maybe it's true, to some small extent). But that doesn't make him more valuable as a customer than person A.
PvP needs constant balancing to be healthy, because it's a human on human interaction, and both sides should be enjoying it to some degree.
PvE on the other hand, is full of very easily accessible cheese strats that the community always share, and is balanced around ''learning through trial and error'' instead of ''grinding individual, very tight, mechanics, not completely intended for 90% of the playerbase, for days or weeks'', and you can choose to not interact with any other player, and go offline, so nobody makes anybody's experience worst. If you like the game or not, is 100% up to you, and that's perfect.
PvE is a whole experience since launch, and is entirely enjoyable and winnable.
PvP on the other hand, usually begins as an unfair mess of random encounters where the most outnumber-ing and/or cheesy team just obliterates the default losing side, with little to no counterplay, usually involving exploits (literally cheating through programming errors and griefing), or brain dead current-patch-god-tier-one-shot builds, and the current still standing issue of poorly downscaled max lvl summons that literally make trading close to pointless.
With looooads of feedback, time, and patience, the PvP community and From Soft begins fixing this, one step at the time.
It's never perfect, but always better.
Being here since Ds1, I really do not recall any souls patch being objectively worse than the last. Sure, sometimes you have to work around and change your build, but it's almost always for the better.
On kind of a different topic, most of the time, PvP patches can or will improve pve indirectly, cause you know, not everything (not even most of it) is a nerf.
Buffing previously unusable stuff or literally not-working aspects of certain weapons and spells/incantations, usually come from the feedback of the fandom of said playstyle or weapon
I think we can universally agree more variety, while not ignoring quality, is always a good thing.