Yeah. I've read other complaining about this. The VoG should be set to the higher level and award tier 1 gear and weapons post-expansion.
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I would agree. It really angers me that Fatebringer, one of my favorite weapons, will never be able to be usable again once I get all of the new gear. I would at least like the possibility of upgrading it or getting a new one.
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It is like a one bullet difference in damage, it is still very usable.
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One bullet for a hand cannon is a BIG difference.