[KongMysen]

Imo King's Bounty took a lot of things from Heroes of Might and Magic. I know that they initially started the genre, but the 3DO crew jest evolved it. However HOMM have never been so balanced and fun as King's Bounty is.

That said HOMM have always been using this formula or a formula close to it.

With a higher attack than defence:
Dmg output = Number of units*base dmg* (1+difference*0,05)

With a higher defence:
Dmg output = Number of units*base dmg* (1-difference*0,02)

In homm1 and 2 the numbers where 0,10 and 0,05 but the last 3 games have been more balanced.
HoMM also decided that max and minimum dmg should be 33,3% and 300%

I know these games aren't excactly the same, but since there are so many similarities I'm guessing Zechnophobe's calculations are correct, and that the lvl 1 units can get far in this Gran Slam, because of their large numbers. They do however fail to spells and skills like Lullaby, fear, Blind lvl 1, sheep lvl 1 etc.
The system works perfectly I think, and I do agree that ATT 12 DEF 4 doesn'e seem the same as ATT 90 DEF 82, but if they changed it, the balance of the game would dissappear.

An example could be Hunters (27ATT) vs Miners (8DEF)

The hunters dmg would be 337,5% but capped to 300%. A hero with 10 defence could lower the number to 150%.
A hero with 10 attack wouldn't be doing any more dmg.