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Well, not good enough to keep you from winning obviously. But this game is often recognized for its sophisticated AI: something that modern games still often have trouble with.

Is it as impressive as enemies from Half-Life 2 or Crysis?
While enemies aren't completely thick, and can always find you and put up a fight, don't expect Crysis level of AI. HL2... Moreso. However, I do believe that people praising AI are mainly praising the 'idle' AI of civilians - they have a daily routine, they work, they react to your influence on the game's world. It's really quite impressive.
They put effort into AI concepts, but it is still exploitable. Gamors always attack with the same pattern. The soldiers are prone to friendly fire from guns and especially mortars. Every subject has its own behavior, though.
As Fenixp said, the AI is very impressive when you consider that the game came out in 1999, but not particularly impressive when compared to today's games. The civilians are impressive, yes, but I also thought the enemies seemed pretty smart given the age of the game. Enemy soldiers will seek cover and try to flank you, making for some really enjoyable battles. Getting out the big guns and attacking an enemy fort is always a good time.
A big deal has been made about how the enemies dynamically react to the player in combat. I was not referring to acting and characterization when I said AI.
Post edited February 22, 2013 by jreaganmorgan
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Waltorious: As Fenixp said, the AI is very impressive when you consider that the game came out in 1999, but not particularly impressive when compared to today's games. The civilians are impressive, yes, but I also thought the enemies seemed pretty smart given the age of the game. Enemy soldiers will seek cover and try to flank you, making for some really enjoyable battles. Getting out the big guns and attacking an enemy fort is always a good time.
They could have written a much better AI in 1998. It's not a good AI because the soldiers constantly hit obstacles and kill their allies with mortar fire. It's an unfinished AI and you can easily exploit this.

A really good AI would probably be too expensive.
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Perscienter: They could have written a much better AI in 1998. It's not a good AI because the soldiers constantly hit obstacles and kill their allies with mortar fire. It's an unfinished AI and you can easily exploit this.
I honestly don't remember seeing soldiers get stuck on objects or killing each other. But I could be misremembering.

I have a feeling I played the demo for this game several years early, which may be part of why I have that impression... I'm almost certain I knew about Outcast before the original Half-Life, which actually came out first. I didn't play the full game of Outcast until recently, so my demo memories probably have me thinking it's an older game than it actually is.
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Perscienter: They could have written a much better AI in 1998. It's not a good AI because the soldiers constantly hit obstacles and kill their allies with mortar fire. It's an unfinished AI and you can easily exploit this.
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Waltorious: I honestly don't remember seeing soldiers get stuck on objects or killing each other. But I could be misremembering.

I have a feeling I played the demo for this game several years early, which may be part of why I have that impression... I'm almost certain I knew about Outcast before the original Half-Life, which actually came out first. I didn't play the full game of Outcast until recently, so my demo memories probably have me thinking it's an older game than it actually is.
And I did a mistake. It's from July 1999.

I sought a clip and here it is: https://www.youtube.com/watch?v=XDjmvljNxI0

Start with 12:35 and pay attention to the soldier in front of Cutter Slade. He'll hit the box. Then he moves towards Cutter and he receives friendly fire from the mortar soldier, shortly after he shoots at the hill.
I actually like that the enemies can die from friendly fire.
The enemies might have a complete disregard for their comrades-in-arms when operating mortars, but they otherwise show some progressive AI for that time. I've caught them flanking me and even running away to call for reinforcements.
I found these behaviors during the game:

A soldier blowing a horn alerting any enemy to the area of attack
A soldier flanking and finding paths through alleys
Running away into a building and set up perimeter when overpowered
Rushing to do melee
Hiding behind objects, taking cover when mortars start to fall
Strafing :)

All in all pretty impressive, made for some surprises and nice battle sequences.