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Broadly speaking, both wheels are Direct Drive (DD) wonders with specs that should satisfy even the most demanding sim racers. The DD2 takes a slight edge in torque at 25Nm compared to its sibling, the DD1's 20Nm. What sets them apart is compatibility; the DD1 proudly supports PS5, while the DD2 sticks to PC and Xbox.
I've seen my fair share of Fanatec wheels in action, and let me tell you - there's a reason why some folks call their RMA process "an ordeal." Users are reporting firmware problems galore, but it seems most have been resolved with the v443 driver update. I remember one poor soul who had to go through the full RMA process; they were left scratching their heads as to what went wrong. When you're dealing with custom wheels and USB issues (hello, ghost inputs!), it's a rabbit hole of frustration. I've witnessed users trying to troubleshoot by adding ferrite cores to cables or even soldering wires - desperate measures indeed.
The big problem here is that these wheels are marketed as top-tier, but in reality, the reliability isn't quite there. Broken Quick Releases (QRs) and overheating have been known to plague these beasts. If you're one of the unlucky ones who experience such issues, be prepared for a world of pain - from tedious troubleshooting to potentially lengthy RMA processes. I've heard horror stories of owners being left in the dark, with support teams taking days to get on board.
For the most demanding sim racers who can stomach the premium price point, the DD2 might be worth it - but only just. The extra 5Nm of torque and slightly improved compatibility make it a better choice for those with high-end rigs. However, if you're on a budget or value your sanity, I'd advise sticking with the more affordable DD1. It's not perfect by any stretch, but at least its RMA process is less of a nightmare.
That being said, if you do opt for the DD2, make sure to document every issue in excruciating detail and be prepared for an arduous support experience. And to Fanatec, I'd say: sort out your firmware issues once and for all - these wheels deserve better.