The loot system in Witcher IS complete shit. Crafted gear is far superior to anything you find. Potions you craft only require mats once, leaving to an overflow of mats. No reason to loot after 20 really
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Exactly why loot isn't complete shit because you actually earn your gear
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You are confusing having an excellent crafting system with having good loot. Not to mention the issue of balancing the two.