The range isn't (or shouldn't be as ) effective. People stand there while the hammer takes the long way home to get there. Seriously if a Titan throws a hammer from long range you have more then enough time to react and move out of the way. Tracking isn't very good either. It's worse then any rocket launcher it is very useless.
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Take away the proxy detonation and you're fine. But it's not hard to hit something when you only have to get close.
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Want to counter proximity? Jump. I've never had it where the proximity has gotten me from absurd ranges like Horseshoes and hand grenades on rockets pre nerf.
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Yeah great advice, jump(and lose your accuracy/make them use another hammer and throw it where you'll land) and run are solid counter strategies.
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It's not nearly as bad as you think. I do it all the time. Get them to waste what's left of their super then melee them or shot them.
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You're right I must've imagined it