Question
"Are the crafting stations themselves tied to progression? Think Terraria or Valheim, where you need to improve your stations to improve your gear."
Answer
"You should certainly expect to get access to more (and better) crafting stations as you progress further as a player. It's a fun way to unlock more things to do, and can give you new challenges to solve for how you want to lay out your home base. Maybe it's a new station that needs a new room - maybe the old station is simply bigger and needs more space. Maybe that fancy new table needs a Wizard Tower."
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