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Part of it if it's not excepted. So yes, and the Dev literally ban mods because of cheats and the experience of mods were killing the game.
So mods will unfortunately never happen.
Wish big youtubers like Insym would stop giving these devs or the game any view or credit
To utilize mods means that the server needs to process that extra data being transmitted... and all the while maintaining all other lobby connections as best as it can. Needless to say, it struggled with this, and mods as a result did actually and inadvertently cause connection drops, even to lobbies playing straight vanilla. Some more severe cases also caused save progress to even get de-synchronized from the servers backup data.
Biggest reason of all, and the most obvious... Phasmo never gave permission for those early modders to do what they did in the first place, intentional or otherwise. Add on the amount of damage control they almost assuredly had to do before they fully cracked down on the primary cause - yeah... if I were in their shoes... I'd probably have done the exact same thing honestly, and just ban modding outright... if for no other reason than so that I don't have to deal with that fiasco ever again.
They'd easily get the servers they wish for modded and also normal phasmo.
Phasmo isn't hosted on Steam Servers, so this is kind of a pointless remark.
Another key thing to note is that backs this up is the fact that this games initial release was planned to be a VR-Exclusive title. This means that they initially had no reason to consider using Steams servers, let alone actually do so.
So all in all - it's fairly safe to say that this game utilizes online servers provided by the Unity engine itself.
Time to start thinking on this fact and why it isn't hosted on steam servers.
They want to themselves ban people, such as some streamers who the devs dislike.
And game bans are still a thing on Valve servers too. So that’s irrelevant.
Not everything is a conspiracy against modders and/or streamers.
Seriously, this is not new information in the slightest, but it's something a lot of people overlook all the same.
Like, even just glancing at the update history of something like the Banshee on the Phasmo Wiki makes this blatantly obvious - the first recorded change to them was March 7th 2020... At least six full MONTHS before Phasmophobia ever entered Steam Early Access
What is there to think about? Devs are allowed to host servers how they'd like. It's their game and they are under no requirement to do things the same way as anyone else.
I'm not sure which is funnier, the fact you think they can't do this on "Steam Servers", or that you think Streamers are getting banned because "the devs don't like them".
Take off the tinfoil hat and try again without the unfounded conspiracies.