Game Informer has whipped up a three-page interview with Bethesda's Todd Howard about their upcoming Shivering Isles expansion pack for The Elder Scrolls IV: Oblivion.
Q: Is the autoscaling the same as with Oblivion?
A: More or less. You take the other things that I said into account, and it kind of changes it. The autoscaling is something that definitely gets blown out of proportion (So the rats scale up with you.) No, they don't. There are certain things that scale, and certain things that don't. There are things we could do better about it, but it isn't this all-scaling thing that I think maybe gets talked about. It's very similar to what we did in Arena and Daggerfall, and to a lesser extent in Morrowind. When I start a game, I go back and I literally play the whole series straight through to see how it feels--the whole thing, not just the last game. How does the whole thing feel? When I started Oblivion, I played them all, and Morrowind stuck out as not doing this. I felt the game balance was better in Arena and Daggerfall, as far as loot and creatures. So we went more in that route. I think we'll do better in the future as far as that goes, but that's two cents on that topic.