Wait, you need context? See, that’s the nice thing about FFXI having run so long, to fans most of these things cease to require outside context. You know that the doll festival is about having lovely collections of dolls out for everyone to enjoy in the three major cities, and you also know that speaking with the event moogles will allow you to obtain your own delightful doll display. That’s what the whole thing has always been about. There! Post over.
Wait, that still isn’t enough context? Gosh, you are demanding. Look, it’s an in-game allusion to the real-world holiday of Hinamatsuri on March 3rd, which itself is a traditional holiday about displaying small dolls based on the court of the Heian period in Japan. It’s a rich tradition that would be considered totally normal to Japanese players but feels rather different to western players. There, are we done yet? Thank you.
P.S.: Seriously, though, the doll festival in FFXI starts up on the 25th.
P.P.S.: If you own any He-Man figures, those are dolls.