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A few things that don't make sense in their defense.

"We thought about this quite a bit," said executive producer Rob Pardo. "One of the things that we felt was really import was that if you did play offline, if we allowed for that experience, you’d start a character, you’d get him all the way to level 20 or level 30 or level 40 or what have you, and then at that point you might decide to want to venture onto Battle.net. But you’d have to start a character from scratch, because there’d be no way for us to guarantee no cheats were involved, if we let you play on the client and then take that character online."

"Now, that doesn’t mean you can’t play a game by yourself – of course you can," he added. "You can go into and start any game that you want, you’ll just be connected to the Battle.net servers, and we can authenticate your character."

In addition, Pardo revealed a list of Battle.net features that will be embedded in the game, requiring a constant Internet connection. These include: persistent friends list; cross-game chat via the RealID system; persistent characters that are stored server-side; persistent party system; player-versus-player and public game matchmaking; dynamic drop-in/out for co-op; larger item stash, shared among all of your characters; the auction house; achievements and detailed stat-tracking; the Banner system.

Now comes another shocker: no mods for Diablo 3. “For a variety of gameplay and security reasons, we will not be supporting bots or mods in Diablo 3, and they’ll be expressly prohibited by our terms of use for the game," read an official Diablo 3 FAQ handed out during the press event.

So no offline mode, no bots and no mods

The character created on the server are separated from the offline characters, which already is the case in D2 if I remember correctly.

Who is bringing offline character online now?

No mods? Also, in D2, you can't play your server character in mod mode. Why is this suddenly a problem now?