Cyberpunk 2077 used the static levels on launch, but changed to almost everything leveling with you in 2.0. I think the change actually worked better for the game, but it’s also done differently than every other game I’ve seen use that approach. Enemies gain stats much slower than V does, so a level 20 V still feels much more powerful than a level 1 V, but you also have the freedom to explore rather than having arbitrary beef gates making it nigh impossible to go to certain parts of the city before you’re supposed to.

On the other hand, I also love Morrowind’s painstakingly hand-crafted world with static enemies and hand-placed loot. In most games done that way, however, returning to lower level areas is typically a complete waste of time.

Ultimately, I think both systems can work if they’re done well, but everything leveling up is almost always done poorly, or at least worse than the average game with static levels.

A system I have thought of before is a hybrid where enemies have a target level and then their actual level is the average of your level and the target level. For instance, if an enemy’s target level is 20 and you’re level 1, they’ll be level 10. You probably won’t be able to do much to them. But when you get to level 10, they’ll be level 15, which you might be able to deal with if you’re good. You’ll eventually out-level them, but they’ll still be interesting to fight because when you’re at level 40 they’ll be at level 30. I only make the occasional mod, though, so I’ve never gotten to test if this actually is fun.