I also think players should be incentivized to play for soft power more. Measuring success through diplomatic, economic, cultural and trade influence rather than simple map painting.I see a pretty good potential for coalitions here, even when compared to EU4.
The way it is, coalitions are a fail state, if you don't manage your expansion rate well, they will fire and cut you down to size.
But I don't think that should be the case, coalitions should be a natural part of gameplay for anyone aiming for hegemony.
So once you eclipse everyone around you, coalitions should become a constant in your game, and the way you navigate this should determine your overall success.
Basically, eveyone should have their Napoleon moment naturally.
Now, how to make "fun to lose"? Well, I'm of the opinion that if coalitions are an inevitability, players might have a mentality more accepting of situations where they'll just have to cut their losses and bite the bullet, fighting defensively to peace out for the least amount of territory possible, and then building back stronger.
And now that coalitions are an IO, there are even a few things that could be done, like creating phases (similar to CK3 struggles), levels of beligerance per member, special modifiers and events, and many more things I'd like to play with in the future.
Thing about these examples is that they pretty much affect everyone equally, so in the end the player isn't necessarily on a more or less advantageous situation because of them.
The reason why putting realistic, hard limits on long term expansion in EU4 wouldn't work is because the entire game is designed around expansion. There just isn't much more stuff to do than colonize and conquer territory.
EU5 offers more gameplay loops during peacetime, meaning that it's okay that you are prevented from expanding 90% of the time.
In EU4, I spend most of my time thinking of who I'll attack next. In EU5, I hope that I'll spend most of my time planning on how to protect myself from whoever is going to attack me.
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