Graphics don't make the sim... especially a sim like Dangerous Waters. The emphasis is on the simulation of the stations rather than the 3D camera showing everything around you.
The graphics have more a feel like a computerised naval simulation rather than actually being there but as I said, the sim isn't about graphics. I find quite a bit of immersion in this sim and I love it. I think I play it more than SHIII. It depends on your mood. SHIII is more an adventure game built into a sim format. DW is more a straightforward sim with the simulation being the focus.
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