This is a shower though I had that I've been mulling, not a fully formed suggestion and I have to admit I do not know if this aligns with what happened historically. However, one problem with late-game HOI4's economy is factory counts increase exponentially and although equipment costs do go up, it is not enough to stop the large number of divisions produced and maintained on the field by the AI and players. In addition, while not the fault of the equipment itself, bonuses and modifiers by countries and their focus tree also end up stacking together so late-game everyone produces more and are also much stronger
One idea I had was what if equipment quality and costs also went up exponentially? To maintain a 1945 army with 1945 gear the same size as a 1940 army with 1940 equipment you need to invest exponentially more resources or you need to "cut" the mixture with some out-dated gear, meaning you prioritize which parts of the army you keep up to date. Therefore countries will have to specialize unless they are the USA/Germany/USSR and can afford modern gear across the board. The reward however, as opposed to just keeping a large army with older gear, is that you have a considerable technological advantage. Therefore a balance of quality and quantity needs to be maintained in order to "keep up with the Joneses".
In order to expand your army you need to either hold back on adopting new equipment or beat the exponential curve of equipment costs with a faster economical development curve. This should hopefully allow for armies to stay a bit smaller as wealthier countries prioritize quality over quantity.
One idea I had was what if equipment quality and costs also went up exponentially? To maintain a 1945 army with 1945 gear the same size as a 1940 army with 1940 equipment you need to invest exponentially more resources or you need to "cut" the mixture with some out-dated gear, meaning you prioritize which parts of the army you keep up to date. Therefore countries will have to specialize unless they are the USA/Germany/USSR and can afford modern gear across the board. The reward however, as opposed to just keeping a large army with older gear, is that you have a considerable technological advantage. Therefore a balance of quality and quantity needs to be maintained in order to "keep up with the Joneses".
In order to expand your army you need to either hold back on adopting new equipment or beat the exponential curve of equipment costs with a faster economical development curve. This should hopefully allow for armies to stay a bit smaller as wealthier countries prioritize quality over quantity.
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