Why do people make their guitars scalloped? (if that is the correct term to when a guitar neck looks like \/\/\/\/ if you look it from above)

I've noticed that alot of guitar players do this...but I just don't know why...does it make you play better or is it just for confort?

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Actually, the majority of people don't scallop their guitars. It's preference. They make it easier to play single notes, IMO. Kinda giving you more control of the tension of the string, lots of control when bending, especially on the upper frets. Some say it's harder to play chords, but I don't know because I've only played guitars with frets scalloped starting at the 17th and up(no chords up there).
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Supposedly, if you scallop your guitars' fretboard, you gain two things:

1) Better control of vibrato, which allows more, shall we say, "epic" bends.

2) Increased speed (<-- this is a side effect, seeing as you have to play while pressing the strings extremely lightly, seeing as if you press down too hard, they go sharp. Essentially you have to learn to decrease the effort needed to fret string, and that , coupled with practice, increases speed full throttle...)
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You're about 90% correct about the Increased Speed. It is a side effect, however, most people will see increased speed by using Jumbo frets or lighter gauged strings because they give the same feel as a scalloped fretboard. Scalloping forces you to play lighter.
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I have a guitar that has a 1/2 scalloped neck, (12th - 22nd fret). I bought it from Warmoth. The control is the main thing. Bending is effortless. Pull-offs are a little easier, because you can really grab the notes. And my vibrato seemed to take shape once I got used to it.
I don't think it helps you play any faster though. I get all my guitars re-fretted with big frets, (either 6100 - big, or 6000 - HUGE). All scalloping and big frets do is give you better control over the notes.

I had another guitar once that had the entire fretboard scalloped. I didn't care for it. On the lower frets, the strings/notes felt unstable.

As for having to play lighter, I use 10's. I don't have to change my touch at all. Yngwie on the other hand uses 8's and tunes down 1/2 a step. So he probably does have a really light touch.
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OK so now you have your question answered, but please next time use the searchbar. There's a pretty big "scalloped fretboard" thread, and I swear these threads still pop up every second day.