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This was done to keep the game fun to watch, because this is where the money is.

The same way online games keep rebalancing player classes to nerf excessively powerful classes and boost excessively weak classes, so that the fight stays based on skill and luck, not on grabbing a super-weapon.

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I disagree. Nerfing classes/weapons in games still gives everyone the same toolset to work with, and more skilled players can still excel with the different toolset.

To use another games analogy, this is more like "rubber-banding" in racing games, where the pack is artificially caught up to the leader.

But the basketball rules, however changed, gave everyone the same toolset.

Not so sure about the Olympics.

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