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The following link mentions that I need to download examples or templates to download play (basically I cannot download latest Play framework)
https://www.playframework.com/download#alternatives
I tried the example and notice that sbt in downloading loads of components including play sdk. Do I have to do this everytime I need to create a Play project?
no, you don't need to download if don't want. theoretically if you create a simple sbt project by hand and add play as a dependency sbt will download every required libs and dependencies. and, if you upgrade your application to a newer play version, it will automatically download newer dependencies. sbt is a build tool, manages everything.
using templates is a plus, to speed up new project creation (and, if you new in play framework, templates and examples can help you to shorten the learning curve)