Some people just cant take losing and therefore play single player on easy. I also think that some people prefer to stay in full control of their gaming experience where in single player you have a lot more control over the AI then when playing a person.

I have to agree with you though, Ill take human vs human any day, especially playing with friends over the net and forming teams/clans. There is a large social aspect of online gaming that is only beginning to be tapped, I think the future for online gaming is massive.

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Dedicated Total War gamer
RTS Lover