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"There is an enormous mental shift that this game takes, and the first most important point to realize is that dynamic events in this world aren't called dynamic events because they happen and random places at random times around the world.
They're called dynamic events because they can actually impact the world and depending on their success or failure will trigger other dynamic events. In the starting zones they start off pretty simple. As I understand it from the devs end game interview, by the time you get to Orr they web out significantly.
That random gathering quest you have, or those random monsters that appear at a base? A lot of times those have a real story behind them, and they don't just "show up" before you join in and "go away" afterward. The dynamic quests are there to help build a more immersive dynamic world.
One of the more simple starting examples:
These dynamic events in the area really tell the story of what's going on. If you pay attention to what the NPCs are saying and doing they will actually have dialogs and interactions with each other. They will react to the different outcomes of a dynamic event. Skritt busted the Asura gate an NPC was working on? Stick around and you get to be part of the retaliation party. Someone just attacked a lookout post? There might be a messenger afterwards you can escort to deliver that news.
Once you start getting to the meta chain events then you'll see more long term changes to the environment based on whether players failed or succeeded at helping in the area.
NPCs are a part of this world just like you. There isn't any of that staged fighting where 2 mobs will be swinging at each other for hours on end until you jump in. NPCs will go down, and if they were key to the objective, you will then have to revive them.
All in all, when I hear that "questing" in GW2 isn't very different than any other MMO, for those who believe that, please, please, please tell me the existing MMOs that have immersed "quests" this deeply (not as simple check points and experience hubs) to create more of a living breathing world."