Guild Wars Factions Previews
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Basically, Cantha is divided into three kingdoms, two of which are at war. Guild alliances, which are alliances of up to 10 guilds each, will be able to fight battles for either the Kurzick or Luxon empires. There are faction battles, which are large-scale PVP battles that determine the strategic situation on the map. Once a day, the Guild Wars servers will calculate the results of all the faction battles for that day and then redraw the "front lines" on the map to show which side is winning or losing. You'll want to be a part of these wars, because if your guild alliance can gain control of a city, you'll have access to special events, such as parades, and to certain parts of the city that no one other than your alliance can enter, which will unlock the new elite missions that offer substantial rewards. The elite missions are geared toward the role players out there, because these are cooperative missions where you'll have to pursue a quest, not battle other players. Put this system together, and you have a way for PVP fans and role players to work together for the betterment of their respective guilds.
And a snip from GameSpy's article:
So why would someone want to hold one of the more coveted cities? To get phat loots, of course. Roughly 20 of the cities on the new continent will allow their conquering alliance to embark on "elite quests" that are unique to them. These will be PvE missions of the most hardcore magnitude available, with rewards that, reportedly, will be commensurate with their level of difficulty. So if you want a clue as to where all the best skills will drop in Factions, chances are they'll be in these elite missions. A few other perks are open to conquerors, too. They'll be able to launch parade-style events in the cities they control, if they feel like showering themselves with fanfare, and they can also access areas of the cities that are off-limits to unguilded riff-raff.