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I'm not saying they need to do away with it, just that they need to make it better because at this moment I don't see it doing any real match making at all.
Yeah that's a big flaw in my eye as well. The community feeling just isn't there. Also, it being mics only is limiting itself. More people would talk if you could use keyboards to post messages in-game and lead to less boring matches.
Like Left 4 Dead or Halo 3 Custom games. Those are easy to just relax in.
Well, Halo 3 not so much anymore.
Aslo, max level in CoD: WaW is 65! NOOB! jk jk
It's through matchmaking that socialising and making new friends is possible, and as others have said it suits the pick up and play nature of the console, especially as hardly anyone has friends available to play with 24/7.
As for a community feeling not being there, I think that matchmaking CREATES that community feeling (although this is flawed in that not everybody talks, as we all know), allowing you to mix and mingle with- well, everybody!
The downsides for me are like others have said, that you can be matched against those who clearly have better equipment and skill than yourself, which can ruin games for you. Furthermore, for every one interesting and enjoyable player you meet, there are 25 self-righteous teenage w*nkers that squawk and squeal at you constantly for no reason.. If you don't have anything interesting to say, shut the f*ck up.
That's why I play Modern Warfare less and less. Well that, and it's not very good.
To me matchmakiing with random people promotes socializing, but is totally different from having a community.
I think that by running parallel to xbox forums and clan sites in general, where you can meet friends more easily, the two different systems work together to help create a community through your involvement.