GMS 2 Best way to implement a dialogue system?


The way I intend to do it is to have a text file with various headers for each characters name and then read from it

Is there a better way than this?
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Depends on what exactly you want. If you want to do things like show character portraits, animated text effects, dialogue choices, trigger events on certain choices, show scrolling text, buttons to control the text, etc etc it can get pretty complicated. If you understand gml a little and you wanted a serious dialogue system you should check out this free option from the friendly cosmonaut it's really good and I use it as a base in my project.