Start a poll. Ask how many continue the game after a TPK. I am certain you will find that the majority start over from scratch, rather than continue, and many will give reasons for not continuing the game.Unless the Villain Winning means that the world ends, I am not seeing the problem here. The "story" shifts focus (assuming no sandbox), but there is no reason not to continue the game.
Take War of the Burning Sky. If the party dies, then it's going to take some effort to just stick a new party in their old shoes. I only played through the first adventure, but
The story hinged on the party getting Information about the Ragesians to some other country/mage tower. It was classified info and in a letter. It would nuke my suspension of belief that, if a TPK occurred, ANOTHER group just happened to have the SAME information and were on the SAME mission at the SAME time. If nothing else, time would have passed, and the events of the AP would be different.
Or typically any other "Stop the villain from completing the ritual" type plot (where ritual is any sort of objective), if the party TPKs, then at the very least, the villain has reached his objective. Otherwise it really impacts suspension of belief that another group just HAPPENED to be in the immediate area when the main group bought it and just HAPPENED to show up in the nick of time. And if the villain's Ritual does go off, then it's not the same adventure, it's a different one. Sure, you can start in the same area, but the quests, the adventure is different, not the continued one. And I would imagine that the majority of games where TPKs happened ... don't continue the game.
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