DAoC: Shrouded Isles Info & Screenshots
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Will old areas of the world look better in the new engine?
Yes, when you upgrade to Shrouded Isles, even the older parts of the world will look much better. New trees, water effects, and especially textures will look much more sharp, detailed, and realistic. Of course the new continents will look best of all, as they are being designed specifically with the new engine's features in mind.