In The Elder Scrolls Oblivion Remastered, level scaling ensures that your enemies keep getting stronger along with you, to ensure that it’s challenging enough for everyone.
Without level scaling, you’d be able to steamroll through the enemy effortlessly, which would soon make the game boring.
No matter how you choose to level up, be it through legitimate ways, or by using console commands in Oblivion Remastered, the devs have methods in place to adjust enemy strengths according to how strong you are. And not just that, even weapons scale with levels.
How does level scaling work in The Elder Scrolls Oblivion Remastered
Let’s take for example a level 1 character who’s exploring one of the early game dungeons, or even just the world. Whenever you come across any enemy, they’ll either me level one, or maybe level 2 at max, with fur armor and weak weapons.
However, once you’ve made it to level 10, if you explore the same areas, you will encounter stronger enemies with stronger gear. Yes the difficulty increases, but you’ll be dealing more damage and losing lesser health, which makes it a good balance.
This holds true, not just for enemies, but the various minigames too. Take lockpicking for example, if you’re at a low level, then the locks that you’ll get to pick will be of low level only. However, once you reach higher levels, you’ll encounter more difficult locks.

Do weapons level scale too in Oblivion Remastered?
Yes weapons and their efficiency scale with levels too, but they seem to do so in intervals of 3. For example, weapon levels between 1-3 will have same damage output, but weapons at level 4 will have a significant spike in the damage output.
The same holds true for armor. At lower levels, armor will have low damage resistance, but as the level increases, the damage resistance also increases. This changes the health that you lose whenever you take a hit in combat.
Overall, the system is a necessary and important one because it ensures balanced gameplay across the board irrespective of the level that you’re at.