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Original post by Kest
As drakostar mentions, scale is the biggest deciding factor.
1. If a mountain region will fit into one tile/hex/square of your game, then you should keep ranged units the same as melee units, and just modify their bonuses and penalties.
2. On the other hand, if a tile in your game is the size of a real world floor tile (around 40 inches or 1 meter), then it would be extremely generic for ranged units to have an attack range of 1. In this situation, you can easily get away with unlimited range for them, where their attacks are only limited by their line of sight.
If #2 is the case, and you're only dealing with modern or futuristic ranged weapons (no slings or bows & arrows), decreasing damage with range will only be useful if you can zoom out and shoot targets that are 50+ tiles away. Things like monsters/aliens spitting acid also won't decrease damage with range, but the spit velocity should cause it to land before it gets very far (3-5 tiles).
Oops, I forgot to mention the scale!
I am not going for 1, where each tile contain a "region". It is more like 2 but probably not to scale with real life. Right now I am using a scale similar to the one used for Starcraft where an armored tank is the size of 4 marines. The entire field is just a few hundred metres across.
I think I am going with your suggestion that modern/futuristic ranged weapons in a scale similar to 2 have unlimited range. And thanks for the idea regarding acid spit velocity! Didn't think of that.
Decreasing damage with range might simulate the variability in accuracy encountered when shooting someone who is 100 metres away? I don't intend to use a random "to-hit %" and so reducing damage seems like the next best choice.