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As all losses isn´t all dead personel, I sudjest some will trickle back from convelesents and kamph gruppe(cadres) created when units are killed.
And my idea is that these replacements are experienced so no or fewer experience is taken away. Should cost no or very few PP to be used.

unless the troops are over run and surrender...
surrounded troops as well in a pocket should not reform.. good idea..
perhaps we should start a thread of " ideas for the bigger more complex Fury"

I agree, something certainly needs doing re experience. Currently only winning attackers build up experience. Surviving defenders lilkely learned as much or, more haveing been schooled by the enemy but took big losses so the experience is lost when the unit is brought back up to stregnth.

Also at present experience is too powerful so I suggest it be nerfed a bit. Even so perhaps damaged units which take replacements should loose a bit of experience due to replacements but much less than they currently do. This should allow the defender to build up some experience. If the experience were cut back a bit I wouldn't even have a problem with no dilution for reinforcements. Outright killed units would be where the cadres get diluted when replaced by new formations. Also when splitting a unit the experience should be diluted.

There is a huge difference between creating a new unit and replaceing losses. Many losses are material and thus irrevalant to experience. This is particularly true of armor and air units (BTW air units personell is MUCH more than just the pilots with experienced support staff having a significant effectiveness impact). Many of the men who were rendered non effectve due to WIA or a morale break or exhaustion (essentially a kind of WIA) return after a recovery period and are hardly green replacements.

There are of course other ways this is modeled in the game. For example the overall experience level of a nations millitary is somewhat reflected in the somewhat mysterious doctriine level.