Looking at other MMOs I doubt that's the only reason. But I agree with you it's a very important reason, for some of the things you named the MAIN reason for sure.
Overall I kinda agree that unless you create something INSANELY compelling/fun (and even if you do, its ability to gather interest won't last forever) you do need a carrot-on-a-stick.
I have nothing against that.
The point is that this carrot-on-a-stick could be something cool but that has no influence over the game's economy.
I.e. make cosmetic or cool items that some people will want but that won't change anything else.
Bad examples? Anything that would give you a gameplay-advantage over other players. Be it in the form of cool Key Items "empowering" your garden, or stuff that's worth gil, or stuff that's worth time ("precious" equipment).
This is the right way to balance it, imho.
FFXI has limited ways of offering cosmetic stuff compared to other MMOs, but they can still offer cool lv1 all jobs items, furnishing for your mog house, titles... etc. If they're creative and IF the event is fun (to a certain degree at least) those would be pretty effective carrots-on-a-stick from my pov.
Yeah but seen this way we could also whine in terms of "why bother with this sort of content (i.e. expense of dev resources) instead of creating new end-game content"than whatever time they spent developing that content that very few will ever bother with.
But in all honesty people like us on a board like this are obviously biased concerning Endgame. Maybe we represent only a minority of the overall paying player base of FFXI, who knows.
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