Really, has anyone figured out? They operate in the same range as SMGs but have a lower firerate and smaller magazine. They aren't really much more accurate either, nor do they have much of an advantage in handling. So pretty much any situation you would use a Sidearm in a SMG is better suited for. Which begs the question why would you ever use one?
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I used them exclusively today to figure out when anyone would use one... still don't know Basically they are the only gun that doesn't get more accurate when you scope in so hip firing works but like you said their damage and handling still makes them outgunned within their range. If they got a damage buff and were essentially close range hand cannons that hip fire that'd be cool but right now they are definitely useless