It is an update, but Technically it's also a DLC. It's downloadable content after all right? They are adding new gear and updating old ones they said in the post. As well as a new strike/quest.
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It's not dlc as its on disk
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No it's not on the disk
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It's not on disk. In order to download the content you need Internet. Because not everything is already on the disc. Being free doesn't mean it can't be a DLC. There are free dlc's
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And it's free