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I can't install games on my computer from work. Its locked with a password so i can't really download anything onto it.

Can anyone tell me if i can i play diablo 3 having installed the game on an external hardrive and playing through there?

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Yes you can, the game can be installed to any location and then played from there as long as the entire game is self contained in it's own folder. The game performance may suffer a little because it is being accessed via a data cable which is generally slower than an internal hard drive.

This also helps in terms of moving the game around from computer to computer/hard drive to hard drive.

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Perfect... Thanks – Pedro May 17 '12 at 14:28
I haven't tried it with Diablo III yet, but you should be able to do it on just a flash drive as well. I put WoW on a 32 GB flash drive, and actually got better FPS and shorter load screens, since it reads faster than my hard drive. The only problem was a little bit of audio distortion. – Ben Jun 5 '12 at 14:13
I run D3 from an 7200 RPM eSATA drive, which is actually faster than my laptop's internal drive. I'm fairly pleased with the performance. I was able to just copy the Diablo 3 folder to the drive after it had been installed with no issues. – agent86 Jun 5 '12 at 14:41
Flash drive/external harddrive terminology can almost be used interchangeably now a days. – Sorean Jun 5 '12 at 15:12

It's perfectly possible. Sure, you can play it from any device, but what's more important: The characters, all their items and progress etc. are stored on the Blizzard servers (even for singleplayer).

This means that you can even play the same character at work and from home!

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