According to Maxis the city sizes are due to performance issues and better simulation. They also said making city sizes too big made players "repeat parts of their cities". For the 16 city limit per region, Maxis said it was due to performance issues on the client (not computers) and budget.
This is all confirmed by Maxis' software engineer Richard Shemaka, who claims that having all these "components all interacting in real-time on a mid-range home computer" is practically a technical marvel.


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