DD had the same mechanics; items were set when you first identify them. KB (king bounty) generates item when the world is created not when items are found/identify.
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Which way is better? That's a matter of opinion. From a purist standpoint (which you seem to argue) the KB approach is the correct approach but that is a perspective not an absolute. I see value in both method and at this point would leave it to the designer's choice.

Originally Posted by Gyson
Originally Posted by GoodKnight
If I could put some input..
Why would you do that? why not just control yourself?
It just feels silly..


Silly or not, if it were just a matter of relying on players to control themselves, game design would be a whole lot simpler. It's an unfortunate necessity to keep things reasonably balanced.

There are better ways to seed and spawn loot. Why not use them? The only thing at risk is the ability to abuse the system. That's a goal worth exploring.