This is awesome. LLM-powered NPCs is one thing I'm most excited about in the future of gaming. Characters repeating the same scripted dialog over and over again is one of the biggest immersion breakers.
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There could probably be cool uses but I don't think it will be a pure "upgrade" as the repeating dialog is kind of a feature honestly.
We'll have to see how it pans out xD
But that's not how real life works at all, right? You talk to someone for as long as you want to talk to them, or until they start sending signals that they are done talking with you.
The way video game dialog works has always bothered me, it makes characters feel stilted and makes me care less about the characters and the world.
(Although it's a different game in many ways, consider by contrast how Portal 2 handles dialog, and the effect that has on immersion.)
oh of course! Sorry, I was never trying to imply that that it was in any way realistic. For video games often the most fun / compelling choice is not the realistic one! Striving for realism can be a great goal and often has a lot of positives, but it is often limiting. Video games are just art, being photorealistic can be beautiful and amazing but is often not the best choice for expressing an idea.