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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My personal theory is that they exist entirely to make No Land Beyond slightly more viable. Other than that, they can come in handy if the Challenge of Elders decides to stop dropping primary ammo, and they can be efficient at racking up elemental weapon bounties. My Havoc Pigeon with Zen Moment, Outlaw, and Skip Rounds (a poor man's Field Scout), and Jabberwocky with Crowd Control, Spray and Play, and High Caliber Rounds are both useful in all of these situations. Plus, they're kinda fun, though I wish they'd come with Full Auto.