Such a sprite solution will not help. It is not a matter of polygons, vertices or texture size. The problem is Gamestudios's internal management of these entities. And this runs on CPU. So you can put a better graphic card into your PC and it will not improve the performance, if you have lots of entities on screen in Gamestudio.

Only an internal debug can help to find the reason for that (maybe there is a slow access to the entity database, missing instancing or something similar). It is hard to find a workaround here to help Garv in a better way. Only reducing the amount of objects in a level might help.

If Conitec really works on this MMO project soon, then they will come to this point also and will have to find a solution.