There are a few problems with large scale Battles in Muds that generally cause people to keep things small. The normal auto-combat gets impossible to follow when you get more than a few people involved for one. Even the basic Room display can be a problem with larger groups.
I am working on a SF project that will incorporate large scale battles, but to do it I am giving everything coordinates and doing a lot of work to support that. So even though there may be 100 people in a 'room' each player will only see those nearby.
A.T
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