Specifically games like Forza and Need for Speed, are these games just not realistic or is there another reason?
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They use a technique called scaling, it’s the same reason 1/10 scale RC cars can go 500mph “at scale”. They’re really going 50mph, but x10 and you arrive at unrealistic speeds. It adds drama and challenge to the game. Many games are designed at between half and 20th scale.
ETA: not everything in the physical world scales equally or in a linear fashion, so that’s why you have some irregularities in how a game may look and feel relative to real life – in particular dynamic forces, like wind resistance and even gravity don’t scale the same as base units like inches or grams.
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