I play MH plenty and can tell you that they narrow down your online options substantially when you’re looking for random hunts to join versus searching for a certain monster to hunt. If I had to guess, the servers don’t put every player on the same online playing field unless they connect directly with other players or their squad. So while you can play with players from anywhere in the world, I believe they sanction off parts of it’s online servers based on how many people are playing. I could be wrong tho.
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