Phantasy Star Online and Guild Wars are both considered MMORPGs - you meet in a huge lobby area, and then all of the areas where you travel or fight monsters are instanced.
If Two Worlds has lobbies (or towns) where you party-up and then travel out into the world, it will be an MMORPG. All you PC games insisting that everything has to be persistant are arguing that Guild Wars isn't an MMO. I guess the instanced raids and epic areas in WoW aren't "MMO" either.
Is this Massively Multiplayer Online? Couple millions Xbox LIVE gamers wandering around towns, ready to party up an explore? Sounds like an MMO to me.
To reiterate, you're arguing that instanced games (Guild Wars, Phantasy Star Online, Two Worlds, et cetera) are not MMOs while persistant games (Everquest, WoW, etc) are.
If Two Worlds doens't allow me to sell items in an online market, trade items with players, challenge players to fight, and meet new people in lobbies (cities) for the instanced sections, I will agree that it is a single-player experience wiith a co-op mode, and some online multiplayer (similar to Gears of War) - however if this does have most of these features, then it is an MMO.
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