I think to understand the term, you have to look at the roots of the first MMORPGs. These roots are MUDs.
A mud is a text game run via telnet. It'd typically have between 30 and 200 people on at any given time, with a decent population being around 60-80. This doesn't qualify the game as "Massive", but it does share an important factor with a present-day MMORPGs: a single game world. I realise that within each game there are different "shards" or servers, but each one of those is large enough to be considered massive in and of it's own right.
GW doesn't have a single game world. It has many small staging areas (called towns), and each one of those staging areas is the size of a meduim sized mud. The thing is, there is no action going on in there. No gameplay. Just group forming, prep, and trade. The actual *game* exists outside of this realm. You can't walk into a zone in see 300 people in it, all camping mobs or running around. It's that "persistance" which is integral to the MMO experience. GW has absolutely no persistance. It's all instanced. You can't even drop an item in a district.
It is one of the things that we love about GW (instancing, protection from griefers and camping) that ends up seperating it from an MMORPG. By taking away your possibility to interact with people (and hence them with you), they take away the Massively Multiplayer aspect of the game.
There is some meaningful crossover though. You can have a guild, and this guild can communicate via channels. You can even organize a meeting pretty easily by going to a common district, and there will be a fair amount of people in that district already. But is a big chat room an MMORPG? Is IRC an MMO? Is our very own image battle thread an MMO game? Depends on how many people are playing =) If that thread were an ongoing story, would that make it an MMORPG?
*shrug* I don't think GW qualifies as an MMORPG. While it does share some essential characteristics (character building, group forming, intra-zone chat) it lacks the "massive multiplayer" aspect of the game.
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Now that dosent mean that it has to have crap load of people on it, it just means that the game has to be massive. This game is massive, and i doubt that anyone would disagree with that.
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A massive game world doesn't mean the game is Massively Multiplayer. There are plenty of games that can be played online with more than one player that have a massive game world. Look at NWN. It's the amount of players that matters.