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So to answer your question, they just didn't want to put much work and time into making the game 'funner' at a higher difficulty and just took the easy way out by just tweaking stats.
This.
https://steamcommunity.com/sharedfiles/filedetails/?id=873311868
To be honest, it is not ‘difficult’ once you figure out how to play around the damage differences, but it SEVERELY restricts what sort of characters are viable and how you can play them. Pretty much anybody that uses direct combat (melee weapons, armour and blocking ) will get eviscerated; Ranged and indirect fighting characters less so.
The link above is to a guide I wrote documenting my process of trying to make a Max Difficulty build.
Basically: Conjuration early game (your summons still deal normal damage) , and Destruction/Poisons mid-late game (poisons aren’t effected by Difficulty, and weakness spells allow for exponentially silly damage), are just about the only ways to deal enough damage to get by on Max Difficulty.
hardcore isn't just about pushing to the max. it is about state of mind where you see no perspectives and remain... [insert something what's not against your morale.]
now... take the amulet. give it to jauf... um...
and yeah, this.
you attack far too quickly in this game and the AI is so flawless in its block power attack 3 strikes then block again. :P
for example in skyrim you can see the enemy doing their windup to attack in this you just block and hope in that insane flurry of attacks block of them recoils your enemy so you can get your 3 in and block again. touch spells are useful if an enemy keeps blocking.
I acutally laughed quite a bit when i went to the arena and while fighting an enemy staggered me and proceeded to run 4 circles around me at the speed of AI light slashing me with a shortsword. i found that to be quite hilarious
Plus, if you're doing jack sh*t in max difficulty, that means you're doing proper warrior build with armor&weapon which is absolute trash in Oblivion.
Use magic. This isn't Skyrim. Magic is far better than any weapon related combat and there's abosolutely no reason to use weapons.
hmmmmmmmmmmm
(My impression of you): Look at me I'm on the internet. I leave mean, edgy trying to be condescending comments in forums that contribute nothing to the conversation because that makes me cool.
So what now tough guy another mean, edgy comment? Or a condescending one? Let me guess...both right???
look at me i'm on the internet. i watch popular youtube videos and act as if i'm the one questioning, despite the fact that my opinion is being forged.
dude... don't give this troll a cookie or he'll become fat. i mean, you've started a nice discussion... why not let it be populated with healthy fauna and frora?
Not really, he just did things the lazy way by tweaking PC damage dealt and damage taken. NPC vs NPC damage is still normal , as is Poison Damage (so characters that use Summons and Poisons don’t have much trouble on Max Difficulty ).
They also didn’t balance magic very well in Oblivion compared to physical combat (*cough* Weakness to Magicka Stacking *cough*), but that’s just one of Oblivions many balance issues lol.
It’s pretty much a matter of squeezing out of the game engine the most ‘effective’ build/play style available, and then using that. The build/play style itself isn’t really that difficult , it’s just restrictive.
Admittedly I did have fun figuring out what these were though. So much so that I wrote a guide about it! :)