This is just ridiculous. And I have read this argument several times now.
Even if they would use "unsigned int" (32 bit) as their number format, since damage is more or less always positive (maybe negative damage could be a heal but I doubt it), you could process numbers from 0 - 4.294.967.295 without any downside whatsoever. A simple zero would take the exact same space in memory as 4.294.967.295, 4 bytes to be exact. I'm not sure right now, but I believe that the damage displayed is in fact a rounded number, implying that at least a "float" is used for the internal number format.
Now, with today's CPU architecture, remember, the NES or SNES times are long gone, there really isn't that much of a downside anymore by using floating point arithmetic. With 32 bit floats, numbers can go as high as 3,4·10^38 - with 64 bit doubles, it's 1,7·10^308 (that is quite huge) - without any performance loss.
Long story short: there will never be an item squish because of performance issues.

MMO-Champion
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I'm guessing by end game, fully raid buffed we'll be seeing hp close to 1mil.
