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Skyrim has better combat system, companion system, voiceover, leveling and graphics, AI, more stable and more mods-friendly.
Both games are about the same, but Skyrim is a bit better (except guilds)
The UI on both of them is poor.
Levelling system I would give to Skyrim as it's more intuitive. Oblivion world levelling has it's own page in the UESP wiki entitled "The levelling problem" say no more.
Skyrim takes itself seriously, there is the odd flash of humour but basically, Oblivion is just really funny, from cringe acting and dialogue to the questlines and NPCs.
In my opinion (really subjective) both main story lines aren't up to much but I'd give Oblivion the edge.
Guild questlines I give hands down to Oblivion. The Dark Brotherhood was really good fun if you used your imagination as to how you killed people and the Thieves guild was hugely enjoyable, for me anyway. Skyrim's just didn't have a patch on it.
Magic in Oblivion wins and I would die on that hill :D The only limit to what you can do is your imagination. You are encouraged to craft your own spells and enchantments. Although I will say that the enchanting mechanics in Skyrim are preferable.
Crafting and Smithing I'd give to Skyrim. The constant having to repair your kit in Oblvion does add to the excitement when you're down to your last repair hammer in an Oblivion gate, but the rest of the time it's tedious.
Dungeons are for Skyrim. The weakest point of Oblivion for me is that they only made about half a dozen dungeons and you soon learn to recognise their brown stone clad, boring setups.
Lockpicking is Skyrim. I could never do the mini game in Oblivion - but that's my bitterness showing rather than an objective opinion.
I've put too many hours into both of them and I use them for different purposes. Oblviion always cheers me up but Skyrim gives me the opportunity to make gritty moral choices and be a complete a-whole if I want to. Oblivion sort of makes me feel guilty if I try
Oblivion is way ahead on everything else. It's a much better game overall.
And while the level up system in Skyrim is much more streamlined and doesn't make you feel like you have to meticulously pay attention to what skills you've improved, it also makes characters feel more homogenous.
It has
Better Combat
Actual magic creation with fun combos
Cooler Armour
Mods aren't as polished but atleast there's actual mods that include medieval weaponry and armour (looking at you skyrim)
Quests are fun as and better then Skyrims (by far)
Need I say more? Skyrim is as wide as a lake but as shallow as a puddle. Oblivion by far is objectively better
Morrowind however is a different story
Skyrim is really good too, and it's far better than Oblivion in most regards due to it's obvious generation leap, better visuals, gameplay, world design and audio design and upgraded AI.
But tbh, this argument is sort of like comparing Xbox One vs Xbox Series X, they're both from the same team, both have nearly identical concepts, but one is an upgrade over the other.
I've never played Morrorwind, but those who have usually say Morrorwind is the best since it establishes the popular formula for the rest of the series.
In the end, it's up to the community, a LOT of people came into the series through skyrim, and they like it best, but those who started off before, whether it was Daggerfall, Morrorwind or Oblivion, they appreciate those games more. Also a lot of people like different styles, some like the roman world setting of Oblivion, some like the bleak setting of Skyrim, and some like the eerie and mysterious blocky setting of Morrorwind.
"controller support" = NothernUI (adds native Xbox controller support)
"godawful leveling system" = Francesco's Leveled Creatures or Oscuro's Oblivion Overhaul.
The most annoyance is clumsy animations and potato faces, that can be fixed by some degree but not on the same level as Skyrim or even Morrowind.
There is lot of mods for Morrowind but Oblivion have not a lot of head replacers, unfortunately.
But well obviously Skyrim is gonna better than Oblivion in that department. Skyrim was released in 2011, Oblivion was released in 2006! Of course technology would've been better and they were able to make better graphics and mechanics with Skyrim than oblivion. Other than that, there's lot of stuff that Skyrim lack that Oblivion don't.
I don't care what anyone says, Oblivion (for now) is still the best TES game (for me)