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The BG40 was one of the first infantry weapons released in Red Crucible. Classified as an Assault weapon and originally the default Red team Assault Class weapon.
In real life, it's simply an AK-74 that has a GP-25 grenade launcher attached at the end of it. The launcher fires 40mm grenades, much like its American counterpart, the M203. In-game however, the launcher doesn't work, rather it was simply made for cosmetic and aesthetic purposes.
When the very first store update came out, the M203 and BG40 were available for a short period of time. However, right after Red Crucible 2 was introduced, the two weapons were phased out.
When it was first released in the earliest days of Red Crucible, it was meant to have the same damage as the M203, its Blue Team counterpart.
Right after Red Crucible 2 was introduced, the M203 and BG40 was phased out, and with the tiers update, it became almost useless in terms of performance, requiring 8 shots at the most to kill a T12 armored person.