Level Scaling

I think that Neverwinter has had level scaling of some sort pretty much since launch, seeing how event skirmishes always threw you into groups of characters of a very wide level range, but it was a complete mystery to me how it worked because the UI gave no indication of what was happening. (Everything appeared to be level "skull" but somehow I wasn't being one-shotted.)

While trying to slowly catch up with the new content, I took my great weapon fighter to Neverdeath Graveyard tonight to fight some dragon cultists from the Tyranny of Dragons module. I was surprised by how poorly I fared as a level 60 facing off against level 28 mobs... until I noticed a new UI indicator that told me that I was being down-levelled to 30 in this area.

It works upwards as well. Later I tried to do an instanced solo quest which told me that I was being up-levelled to 70 as soon as I entered. Sadly it didn't seem to be very effective as the first single level 71 mob I encountered took me several minutes (!) to kill and I nearly died several times. On death it then birthed three smaller mobs which killed me before I could even blink. Let's just say that I decided not to proceed with that particular quest for now.