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Dynamic difficulty is a mechanic that is a testament of a player's skill, the purpose is to provide casual players some mercy while the good ones get the challenge they seek. Keyword here being player "skill". In action games that utilizes this, it is not immediately apparent that such a mechanic even exists, and a player can usually compensate by simply getting better at the game. Even then, these games still feature difficulty options that limits how far the scaling can go because otherwise it could easily spiral out of control. Under no circumstances can dynamic difficulty replace standard difficulty options for ANY reason.
On the other hand, it is absolutely dysfunctional in an RPG because turn-based combat centered around numbers doesn't demand skill - but rather foresight and trial/error. Battles too difficult? Just grind some more. Rinse and repeat. There is no incentive to get stronger or play competently if the enemies are simply going to scale with me and provide me a challenge regardless, after that it becomes a matter of knowing "what" causes the scaling and how to not screw yourself with the dynamic difficulty rules. Final Fantasy VIII did this, and the system has been abolished ever since because of the atrocious ramifications it could result speaks on its own - how good you are at the game are entirely dependant on how well you could game the system, instead of you know, actually making the game easier for playing it wrong.
A difficulty option that can be toggled at any point in the game achieves the same thing if you want the player to experience it the way they want to, without jumping through a thousand hoops. As a player, if I want to have an easy time through the game, I would pick Easy mode or overgrind myself, else I'll be playing the harder difficulties. Please do not deny me the experience I want to have.
On the other hand, it is absolutely dysfunctional in an RPG because turn-based combat centered around numbers doesn't demand skill - but rather foresight and trial/error. Battles too difficult? Just grind some more. Rinse and repeat. There is no incentive to get stronger or play competently if the enemies are simply going to scale with me and provide me a challenge regardless, after that it becomes a matter of knowing "what" causes the scaling and how to not screw yourself with the dynamic difficulty rules. Final Fantasy VIII did this, and the system has been abolished ever since because of the atrocious ramifications it could result speaks on its own - how good you are at the game are entirely dependant on how well you could game the system, instead of you know, actually making the game easier for playing it wrong.
A difficulty option that can be toggled at any point in the game achieves the same thing if you want the player to experience it the way they want to, without jumping through a thousand hoops. As a player, if I want to have an easy time through the game, I would pick Easy mode or overgrind myself, else I'll be playing the harder difficulties. Please do not deny me the experience I want to have.