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LudicrousSpeed said:

Bumps and taps not taking people out is one of the main issues the game has had since its inception and its where the "bumper car physics" came from. You can bounce off walls or other opponents with little to no penalty, usually it actually saves you time. One of the last passes in the Japanese race yesterday the 4th place driver passed 3rd by bumping him on a turn and bouncing off into a perfect turn angle. GT makes block passes a literal thing.

Meanwhile even in a non-sim racer like Driveclub if you were to do that you'd get a speed penalty. It baffles the mind why they haven't really changed their crash physics much at all. It's been right up there with AI and sound on lists of complaints.

You can drive very aggressively in DC and use the AI to take corners. Penalties only happen when you take it too far, as in use them to slow down. Same in project cars and in Dirt rally the AI doesn't even see you in rallycross. Another car pushed me along sideways for half the track without ever slowing down. GT5 and GT6 were a lot more strict with penalties, yet most people turned them off online as there are always ways to abuse them.

I'm kinda excited about the race etiquette part, long overdue. All the blocking and forcing passes by late braking on the inside always led to arguments online. Perhaps that new mode will improve the understanding of what a legal pass actually is.

Formula 1 had a decent solution, force you to give up your position after an illegal pass or face DQ. Work much more effective than a speed penalty which usually lets you keep your gained position anyway. Better than damage too as the person that was wronged usually ends up with worse damage after being forced off the road.