Now, creating a single-server world for millions of people isn't easy. Not only do people have different interests, as pointed out in part one, but the world would also, quite literally, get too full. Imagine World of Warcraft's Dalaran (or worse, Ironforge in vanilla WoW) with a hundred times as many players or more. Or imagine the amount of loading time for your capital city in Aion several times more personal shops around than there are already. Below I'll discuss several ways to alleviate this problem, to actually make single-server worlds possible.
Channels
Ixobelle called this "the worst thing" in his comment on part 2 - creating instances of zones within the same game world that players can switch between. Aion uses this model (although it uses traditional sharding as well) for its questing zones. If a zone is too crowded for your taste or your quest mob is currently dead you can select a new channel from a drop down menu, wait a few seconds and voilĂ , you're in a different instance of the same zone.
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Now Aion is a small fish in this regard since there are only (as far as I have seen) five channels per zone, no channels in the major cities, switching channels is manual, and there still is traditional sharding as well. In a massive single server world things would have to be different. For one, allocation of channels must be partially automatic. Upon entering a zone, the game would assign you to a channel according to a set of rules. These can be very complex and include factors such as the channel your party members are in, the channels your friends and guild members are in, the population of the channels, and personal settings. Under no circumstances would I include a Tabula Rasa like selection whenever you switch zones. Channel allocation should be intelligent and automatic unless the player actively chooses to switch channels manually.
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Another huge advantage to a dynamic channel system would be its ability to even out the population of zones. If a zone is not very popular it would simply use fewer channels and therefore still give you the feeling of a populated world. High density zones would use more channels so it isn't too crowded.
Spread it
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Compare that to a MMORPG, let's say WoW. Travel is cheap and fast, it's not a big deal to be in Dalaran one minute and in Blackrock Mountain five minutes later. Most locations are only of interest for a short time (i.e. levelling zones) while a select few will always be interesting for everyone - for example transportation hubs like Dalaran and trade hubs like Ironforge. Theoretically there are four such trade hubs on each faction since the four capital cities provide essentially the same services. Still people flock to one or two of them because those have been established in the community as trade hubs and there is no reason to go to another one.
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Summary
Finding a better solution than sharding for handling MMO population isn't easy, but it definitely seems possible to me. Having a huge game world with a spread-out player base is preferable to channels but can be very hard to do. I have yet to see an MMO that manages to evenly spread its population around the world - even EVE's trade hub Jita can be quite overcrowded at peak times.
Existing channel systems are quite bad, but that doesn't mean that one should discard the entire idea. I remain convinced that an intelligent channel system can be designed that is good enough to not completely confuse newbies and requires only a limited amount of suspension of disbelief from the players. "Additional instance servers can't be launched at this time." isn't exactly keeping the fourth wall intact either and still millions of players play and pay for WoW.
What are your thoughts? What did I miss? Is there a perfect system out there already that I just don't know?