I still haven't figured out areasonable solution to this problem. I think magic level 1 spells need to be about 50% more powerful than a sword or shotgun to even be worth investing in the "Magic" attribute. Otherwise, you may as well dump Magic and max strength or Dexterity.
However, if Magic gets too much more powerful than physicals attacks, nobody would play a physics based character and everyone would play mages, which is dumb too.
Let's be clear, everything in Square-Enix JRPGs is over-powered, and about half of all spells in AD&D are over-powered. I'm trying to make the game as "internally fair and balanced" as is humanly possible for magic to be.
Earth: extra damage and +1 difficulty check to enemy magic evade.
Fire: Hits a 3x3 grid, but hits allies too.
Lightning: Hits in a straight line, but hits allies too.
Ice: Freezes a single target for 1 or 2 rounds based on spell level.
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AI Opinion
Balancing magic in RPGs can be quite challenging. Consider implementing a system where magic has unique benefits that aren't solely based on power. Introduce strategic elements like area control, support spells, or status effects that physical attacks can't provide. You can also create cost-reward mechanics where powerful spells consume more resources or have longer cooldowns, requiring more thoughtful use. Enhance the diversity of both magic and physical combat, so players find appeal in various playstyles. This approach maintains balance while making magic and physical attributes equally appealing. 🎩✨
I'm already doing those things. Most of the spells are actually not damage-dealing nor healing, but rather status buffs and debuffs.