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It was earlier advertised that the whole Witcher 2 game has only 4 loading screens. After completed Witcher 2, i found all the maps are small to my taste (my opinion). All the chapter's map will be loaded beforehand hence when exploring the whole map there was literally no loading times at all.

It makes me wonder if they can do away with the loading times altogether? Possible that the REDEngine to have a large SEAMLESS map?

Just wondering was it REDEngine limitation that it must have a small mangeable map to be loaded to RAM beforehand? If so hope we can see an improved version of REDEngine 2 for Witcher 3 with seamless map, no loading times and bigger world to explore?
I think what you are looking for is a story limiitation, not an engine one. In each chapter, Geralt travels a significant distance up the Pontar river. Unless they decided to generate all the land in between and make it an open world game (cool, but not their intent) then the between-chapter loading screens are here to stay.
I think I've seen your plea for a sandbox world in at least a dozen topics by now - and I don't read every single topic.

The Witcher was never a sandbox game and it will never be a sandbox game, regardless how many topics you open or hijack about it. The Witcher is a story driven game and thus has chapters with seperate maps.

I think what you want, is to play Oblivion. Where you have a huge world, that waits for you to explore it back and forth and which you can fill with your own content. On the other hand, the story of Oblivion is very weak in comparison and interaction with NPC's feels completely different. Of course there are custom adventures, which are better than the vanilla main quest and which let you use the world of Cyrodiil. I've played some of them and it was very nice. But you can't compare that with a game like The Witcher. My opinion: Witcher is a game you CAN mod, to make it a little better or to your liking, Oblivion is a game you HAVE to mod to get a lange amount of playing pleasure out of it. But I digress.

You don't like the talent system (and don't use them and the advanced tactics, apparently), you don't like the world, you probably want to customize Geralt even more than the hairstyle, which is a big concession and fanservice as it is. Maybe The Witcher just isn't the game for you? Maybe your definitions of a good RPG are largely different from what RED's are, maybe you don't even like a complicated story. Or your calling is to make it that much better than it is. Then get to it, but instead you keep nagging other players with your very personal wishes for a completely different game. Why do you think that anyone here would change that for you and, most importantly, why are you so dissatisfied with the game as it is? I ask this, because you don't talk about issues that a lot of other players see as a design flaw or bugs or anything that doesn't work like intended or wanted. But you find fault with the very core of game design. There's really not a lot you can do about that, except play a game that is more to your personal taste.
Not even Oblivion is a seamless world; only the open country is. The cities are closed, separate worlds. This decision has come in for a lot of ill-informed criticism ever since the game was released.

The "Open Cities" mod for Oblivion takes on the problem of making the cities and open country continuous. And it works, but you need one hella powerful computer to play it.

You can only get so much detail in, before you have to segment the world. From what we see of the performance of RED Engine in Flotsam, I'd say that the limit was reached.

Would you like Flotsam or Vergen or Loc Muinne to be less generously populated and rendered, in exchange for an open world that contributes nothing to the game? I wouldn't.
Not really a problem, but I would personally like the engine to be able to have bigger crowds.... it would make the prologue a bit more epic.
The limitation is not in the game engine, it is in your hardware, and in reality even at smaller cells, they are not fully loaded/pre-rendered into memory, much lees open world games' assets are not all loaded at once. The amount of resources you'd need to pre-render an entire game like Witcher2 at high resolution levels, you'd probably need something like a Sun Fire X4800 or a Primergy RX900
Yeah I don't think the performance of flotsam shows in any way the engines limitation because gpu use in flotsam is stuck at around 60 % so the performance is not due to the engine but to the drivers/hardware