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Champions Online, a game made by Cryptic, is a game which is filled with multiple instances of the same areas, includes group play for only 5 people at a time and each area has a limit on the number of people which can be in it as well. This game is considered an MMO.
At the same time, Battlefield 2, which came out in 2005, allows for 32 vs. 32 combat, 64 total players (Around 20 more than there can be in a Champions Online instance). There can be squads of 6 players and you can still work with people who aren't in your squad. There is a persistent character that you play as, in-game VOIP, you gain experience and levels and can get new access to gear. The levels are replaced with ranks such as Gunnery Sergeant or Corporal, but they do have distinct difference between the two, as the higher you get the more access you get to different equipment.
If Champions Online is considered an MMO, why isn't Battlefield 2 an MMO by the same logic? You actually play with more people at a time in instanced levels, there are clans and there are persistent characters which gain levels through combat and can gain new equipment. Squads represent groups, and working with people outside your squad can be viewed as a group quest. I would say that either both of them are MMO's or neither of them are.