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By the way, being even considered friendly to a faction can also have opposing factions use different dialogues to you, or even treat you differently just from gaining 50+ rep from the bounty hunts. You can forget about speaking to the higher ups.
Allying with a faction may be more beneficial at the SE map quadrant, since one of factions even bothered to offer you an alliance without angering major factions, just the other factions who prefer to attack you first than asking questions.
How they know of your affiliations is their communication channels. They see you as a faction in of itself, and will refer your reputation as such. Word of mouth exists, and can be faster than you'd expect.
This choice is for either roleplay reasons (and for the Holy Nation case, you had up to your nose in their BS and had enough being the sly diplomat), or want to save time that may have been spend healing and bounty hunting.
Of course, which factions are the biggest jerks can be subjective, while which ones are the most prejudiced is objective.
As for communication channels... no. No, they don't exist. This is you putting your "real life" reasoning on a game that has massive real life limitations in other departments.
My question was simple, and not a discussion. "Is there a point?" My observations have indicated a solid no - no allied faction warriors coming to my rescue with the HN, no respect from their characters, no changes. I understand that there's some world state stuff that changes, but all I wanted to do was to become "allied". Reputation, by itself, doesn't seem to have a benefit, even in the simplest to implement "discout at shops". Unless there is one?
Didn't use real life reasoning on this one. I saw how fast reps change just by declaring your allegiances, be it United Cities or with Moll. Or patching up someone with a diplomatic status. I really did those kinds of stuff just to check the rep change reports. There are other rep change announcement events, but that's spoiler territory.
As for having points, that depends how you would use it. United Cities have corrupt guards and off-limit areas such as Tengu's Vault, so friendly relations will make corrupt guard encounters less occuring, and you can walk around off-limit areas as you wish with the exception of noble houses due to private domain protocols (I don't always barge into their homes to check their reactions for tresspassing). UC Police buildings are publically accessible, but their use of beds apparently becomes usable free of charge at 50+ relations.
The one thing when it comes to base building is location. No matter how far I am, the Western Hive will go to the ends of the world just to persuade me to buy some of their stuff. I don't expect HN or UC walking up to me if I built something beyond their territories. As for factions defending the base, it also depends which faction is closest to your base.
Rep changes change fast for healing people. But not saving an entire group of soldiers from Beak things. It seems like a very shallow system at the moment then, sadly. Less so than even Rimworld, which would at least send some caravans your way if you were allied. Shame. Looks like I'll be purposefully losing my alliance then, since it locks me out of content way more than it gives me any.
Rep changes become more pronounced when they happen in their towns. They don't do much if you patch them up anywhere else, just fractional percentages.
It took some perseverence, but healing crab raiders in their crab village after reaver attacks resulted in a good amount of rep gain.
In some cases yes their is a clear reason to ally. The floatsom Ninja for example come to your base to help fight HN if you are allied. They even have a dialuge that basically gives you a quest and a note that can be used to gain more support from traveling floatsom groups.
This is only one I am sure of but I am willing to bet more exist.
I have just recently started playing again and a lot has been added since I last played.
I have 3 flotsam notes from Moll now lol.