So far it's a combination of both. It's definitely more friendly to group...example:
Early on you get your special attacks. You hit the "attack" button and it autoattacks like other MMORPG's. You can mix in specials, but you'll keep hitting if you don't do anything, unlike CoH where you had to hit something as simple as brawl. However...and this is the coolest part...they have what's called "Heroic Opportunities" in EQ2. At the start, they're very basic. As you level up, I assume they get more complicated, but they require teamwork sometimes.
Here's how they work:
You do something that flags a heroic opportunity..some are skills that start a chain instantly, others are something that anybody has done. The next skill in the chain must be performed at that point. It may be a scout skill, a priest skill, a warrior skill, etc. After that one, then you get the next one in the chain. Basically, it's a group teamwork creation tool. You may need to have 3 different characters, all working together to get off a heroic opportunity in 30 seconds. If you do it, you get XP and all kinds of crazy effects that levels everything around you, but they can be tough to time properly.
You can do some simple, solo heroic opportunities early as well. Those are where the CoH-style combination of button presses comes in. You still have autoattack and specials like other MMORPG's, but you can also implement the Heroic Opportunity "combos" to turn it into something more.
Definitely easier (and more fun) to group though

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