Have you ever been faced with the frustrating situation where you receive a Legendary item drop after defeating a boss in Diablo 3, only to find out that it is worse than a Rare that you posses or is a duplicate Legendary drop from before? It seems Blizzard is hard at work to abate your item drop issues.
Diablo 3 Game Designer Travis Day made a post on the Diablo 3 blog, discussing the changes they are making to address item drop problems, maximize farming and minimize the importance of auction house.
He spoke about different aspect of itemization, including the changes being made to Legendary and Rare item drops that reflect the level of monster that dropped the said item, introducing “game changing effects” to character specific items and reducing the frequency of Rare item drop, so that the player receives fewer loot but drops that are worth equipping.
The design team is also looking to decrease the players’ reliance on the auction house by introducing “targeted Legendaries” where “named NPCs have an increased chance of dropping specific legendary items. For example, The Butcher could have an increased chance of dropping The Butcher’s Carver.”
Source: Diablo 3 blog