3 teams.
Keeps things interesting when it's not just us vs them, even though one team is almost certainly going to be vastly inferior.
Biggest reason for going teams is people get a built in community whom they can work with. You know who your allies are, and whom you are supposed to attack.
FFA attracts a certain kind of crowd, all of which we probably have absorbed up to this point. People don't attack others because they don't want to alienate them as potential allies, or don't want to exploit situations (killing low hp people and what not) because they feel like total assholes. However if those players are on opposing teams it would feel natural to attack them, it's what you're supposed to do.
I think teams have a larger potential playerbase then ffa.
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