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It's not hard but investing in AI lowers the total profit. Good AI require much money. And again, most people that buy the game find it hard on Normal difficulty. This is gold for the game companies, to have dumb customers.
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Who said good AI cost much ? Look at HoMM3-babies mod for theLegend and you`ll see 1 man made great changes into how AI acts (it`s not perfect, but is MUCH better then what game devs implemented in original settings. All done by single person, without game studio, or professional programing skills.
And gold for gaming companies isnt having dumb customers, but to have lots of players. Just look at WoW(and similar games) success, millions of players for how many years already. Variety of choices (class, alliances, items, quests ...), functional game enviroment and just lots of things to do.
In KB series there is one way to go, and story is very linear and it`s cool. But at least in that placement let us have game that works what it`s supposed to do : no retaliation units except vs spider boss, bunch of broken quests/translations/ingame mechanics ... Not to list all of game problems (would take too much time), i love KB series so far but they made rushed release and there is just to much bugs/errors for this game to be called polished product ready for market.