In truth I would not call either "worse" Level design and pacing is far more importnat.
If I had to choose I would say that Last gen military shooters are worse, mostly based off of horrible level design, constant "stop and go" pacing, short length and often stuffed with more unneeded set pieces then a movie O.o (for an interactive media this is a huge sin).
Open world games have way more variation to begin with, genres and such. In FPS games they offer more tactical ways of handling a situation, and sadly while the level design is often fairly simple, it is far better then the corridor shooter nr#38 (corridor often being too generous, as curved line often fit better).
Open world games CAN be bad. If there is an open world with no reason to exist, it is an issue. And the grid type of respawning you often see, just irks me to no end "clear outpost, walk 10 steps, and the whole outpost is populated again"
But as a whole, Open world games have some really nice advantages, in choice, ability t o give a more natural pacing (just as long as it has pacing). Far better world building. And in say FPS, it gives a wider range of weapons its due.
In RPGs it simply feels more natural to have a huge world where you can travel to and from, with cities and such, the lack of interruption from loadingscreens, and barriers much more rare. You get more of the feeling of place and people.
3rd person action games, well these have had open world games since forever, they have always worked. But they suffer of the potential pitfalls too ironically. L.A. Noire is a prime example. Where you have a huge city, and nothing really to do in it, except walking and driving around, sure it is good for atmosphere, and can be good for a more natural pacing, but an empty open world generally ain't a good thing.
Now a very very bad thing in open world design, is the quest marker, effectively driving a large amount of players to steer through a game world, never once watching the world around them, or explore. if you have even SLIGHT OCD tendencies ,the quest marker can be absolutely horrible, robbing you of much of the enjoyment. A general area marker seems to work just fine. But the pinpoint one... oooh they bad..
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