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Curiosity compelled me to run a test of the following:

3 Soviet Split squads in woods come under fire for a minute by MG42 at 100 meters.
Compared to 3 Soviet FULL squads in woods under a minute of MG42 fire at 100 meters...

Result:
All 3 Split squads were pinned
Full squads: 1 pinned, 1 shaken, 1 cautious.

I think alot of CM players intuit that split squads suffer a morale drop, and they do indeed.

No need for screenshots, just thought I'd pass on this confirmation.

I'm not sure there's any debate about it....think it's also in the manual somewhere. The only debate is how much the drop is. The best hypothesis I've seen is that they drop a morale level....that seems to fit with what I've seen.

Thanks for the test to confirm, tho, Mikey.

I wonder if squads that have fewer men in them suffer as well. Would a 6 man squad be the same as a 12 man squad that has suffered 50% casualties, or a 12 man squad that is split into 2 6 man teams?

I think there the answer is that there's no morale drop for the full squad, but a casualty to the six man squad piles on more supression than a casualty to the 12 man sqaud.