Comment by namelosw
14 hours ago
It's often a very bad idea. One example is The Elder Scrolls IV: Oblivion. Players are punished for leveling, and many players simply give up and have to do everything on level 1.
It's essentially punishing players for playing well, and often could be gamed by playing badly intentionally.
Oblivion's problem is even worse than that. You can level up entirely from improving non-combat skills, so the enemies are harder and you're only better at jumping.