D&D is a good point of contrast because the numbers are deliberately kept small so the requirement of doing mental math does not get in the way of people enjoying the game. Because the numbers stay small, a level 10 weapon isnt hundreds of orders of magnitude more powerful than a level 1 weapon. You dont outscale gear at an insane rate. The player keeps the stuff they find for longer. The longer players use the same stuff, the more you can tie loot into a story and the world of the game because it is a constant part of it.
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Also agree - with the contingency that upgrades are not so rare that the lootsystem feels stale.
It's a difficult balance it seems.
