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In my opinion, 9-10 factions would be ideal. BUT...
I don't know what faction could be added to Heroes 5 after the Barbarians (considering which factions already exist) without resorting to cloning... :smile32:
We shouldn't forget that Heroes is based on a certain "fantasy world," and you can't just throw anyone into it. And this world is different from D&D. ;)
And then there are various other thoughts... (IMHO)
1. Elementals are not a faction. They don't live together; they all exist separately in their own "elemental planes."
2. The world of "Heroes" has changed since the 3rd installment and "Might and Magic 7," which corresponded to it, because, as I understand it, a global apocalypse occurred, and everything mixed up (including the concept of the "Dungeon" with its Beholders, Medusas, and Minotaurs, which is related to Nihon from Might and Magic 7). That Dungeon was the opposite of the "Tower" - Wizards were opposed to Warlocks. In Heroes 5, the Academy/Necropolis completely disrupts this scheme.
3. Away with the beasts from the castles! :D
In short, based on what has been said: 8 factions (as they are currently planning) is the best, if not the only option (with the approach to balance that "Nival" presented). And diversity should be introduced through alternative upgrades (damn, I agree with the developers :) ) and by increasing the number of neutral units (and coming up with more ways to recruit/interact with them so that they fit properly into the racial balance)...
That's my IMHO:smile13: