So I'm not sure if this is an intentional feature, or a bug, or what, as I can't find any mention of the weapon steadily losing damage over the course of automatic fire, but sure enough when I went to use the weapon, that's exactly what happens. And its not an insignificant loss either, when using extended mags, the final bursts only deal roughly half the damage of the initial one when being fired automatically. So it seems to be an a per shot loss of ~10-13% damage
Now I know fusion rifles aren't as popular as they used to be after the shotgun buff, but I'm surprised I haven't seen mention of this before, and to be honest, it feels a little unnecessary. The weapon already has a terribly long wind up, and horrendous stability to thin out the damage potential of its automatic fire. So I really don't think the stacking damage loss is needed.
It takes a feature that already heavily balanced against through and just piling on an extra handicap, and I just think there's already enough working to take the exotic punch out of Pocket Infinity. And at this point it's a weapon that just feels more like a novelty exotic than one worth using over a comparable legendary.
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Yeah I never use Pocket Infinity because of the overbalancing you mentioned. It's a broken (bad way) gun now.