The game is still in alpha - there will be difficulty setting upon final release. The game balance still changes very much: in the very first build, you could fireball everything and everyone with just one shot. The next build was very hard, you hardly did any damage and had to hire two additional companions to be able to survive at all. Then, they again decreased the difficulty a little bit because many players were complaining of not being able to go out of town at all. So, at the end the right balance (with different difficulties) will be found but it might take a few more updates.
Edit: I was typing too slowly
