Instead going from happily running around to being unable to move after picking up one too many items, this mod makes it gradual. - - Version 2 now available
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Big thanks to the SKSE team for making modding possible at all. And Version 2 owes thanks to DavidJCobb for his reverse engineering repo, which has the locations of many useful functions.
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Inventory weight management can be a real pain, but I think that much of that is due to how you suddenly become essentially unable to play the game anymore the moment you hit the limit. With this, you can keep going if you're just a little overencumbered.
And it's an even bigger issue if you're using mods that have carry weight debuffs, since you can become suddenly immobilized mid combat when it's the vanilla all or nothing.
By default, minor penalties start to kick in a little before you hit your max carry weight, to compensate for being able to move above the limit, but it's all customizable via MCM.
What this mod does: The vanilla overencumbered penalty is disabled until you exceed your carry weight by (default: 30%), and instead you get a gradual movement speed and (optional) stamina regen debuff that increases as you get more encumbered.
What's new in version 2: The vanilla penalty is actually disabled instead of being worked around and hidden, and all of the weight monitoring is done in SKSE, making for a lighter papyrus script. (not that it wasn't already efficient before)