When Bungie announced The Iron Banner for Destiny, they emphasized "gear means everything." After all, the week-long event is said to be the "true" Crucible test as it removes the automatic balancing that's normally in place. In theory, the Legendary and Exotic weapons and gear you've farmed for should make a difference, giving you an advantage over those who wield only Rares.
For many, though, that doesn't seem to be the case. The forums and blogs are filled with Guardians complaining of the system, arguing that the system in place isn't really taking gear or level difference into account.
The latest bit of evidence, in which a player posted a video of him dominating the Iron Banner at level 4 (equipped with all Common gear), at least sparked a response from Bungie.
Though the developer has yet issue a formal response to the complaints, Bungie community manager DeeJ did say he will be addressing the Iron Banner balancing controversy in the weekly update. The gist of their message, based on his preview, is that "Power Matters, but so does skill."
So I'm assuming they'll say the system is fine, but that your skill is ultimately what's determining your kill/death ratio.
I'm hoping that in the preview, Bungie also addresses another problem plaguing the Iron Banner, players leaving the match before it's over.
