First, I thought it was a bug. All my calculations didn’t fit.
I thought resistances are reduced by 40 % just meant, that if you have an item with 20 % resistance, you only get 12 %.
Res_new = 1 - (1 – Res_old) x (1 - 0.6 x Res_item)
But this is not how it is working. This is only how it should be working in a normal world.
For example:
You have 50 % resistance and are getting a new item with 20 % resistance and the last item didn’t had resistances. That’s
Res_new = 1 – (1 – 0.5) x (1 – 0.6 x 0.2) = 1 – 0.5 x 0.88 = 1 – 0.44 = 56 % resistance.
So, in World Tier 4 with resistance already at 50 % an additional item with 20 % resistance should give you an additional 6 % resistances. That should be meant by diminishing returns.
This is how it works, and I might add as a former math tutor, that the person inventing such an idiotic system would instantly fail my class:
You are getting normal diminishing returns for all World Tiers.
Res_new = 1 - (1 – Res_old) x (1 - Res_item)
And if you get R % resistances in World Tier 1 or 2, you get
0.8 x R in World Tier 3 and
0.6 x R in World Tier 4.
That means 60 % resistances is a hard cap for resistances in World Tier 4.
Because all non-physical damage is divided 50/50 between armor and resistances, your resistances will always reduce the magical damage by less than 30 %.
On the other hand, your armor has a hard cap at 85 % (I have heard.).
This will give you not only an 85 % damage reduction versus physical damage, but also a 42.5 % damage reduction versus magical damage.
To be totally clear here, your magical resistances will have less impact on your magical damage reduction than your physical resistance, also called armor.
Let’s do some more calculations.
Let’s assume you have a sorceress or necromancer with 1000 Intelligence, which is getting you 30 % to all resistances. And let’s assume you have some resistances up to 50 % and some at 30 %.
50 % resistances at World Tier 4 would be 83.3 % in World Tier 1 and 2.
30 % resistances at World Tier 4 would be 50 % in World Tier 1 and 2.
I have done some calculations with my level 78 necromancer and I could get 1 % more damage reduction (from 73 % to 74 %) with about 60 more armor, that is 60 more strength. 60 more Intelligence is giving me 0.6 x 3 % = 1.8 % more damage reduction against magic, but with extreme diminishing returns from item resistances.
With resistances (at World Tier 1/2) above 80 %, your resistances from more items are decreased by 80 %, with resistances above 50 %, all item resistances will be decreased by at least 50 %.
To get from 50 % resistance to 55 % resistance in World Tier 4 you need to get from 83.33 % to 91.67 % in World Tier 1/2.
0.9167 = 1 - (1 – 0.8333) x (1 - Res_item) = 1 – 0.1667 x (1 - Res_item)
0.1667 x (1 - Res_item) = 1 - 0.9167 = 0.0833
1 - Res_item = 0,4997 => Res_item = 0.50
That means, to get from 50 % resistance to 55 % resistance you need an item stat with + 50% to all resistances. With about 300 more armor you would get at least the same result (+ 5 % physical resistance is worth more, because you can get up to 85 % and it works for physical damage, too).
You could also get 2.5 % more health instead of 5 % magical damage reduction (resistances only count for 50 % of the damage reduction). One Royal Ruby would get you 4 %.
What gem gives you 50 % to all resistances?
None! You would need about 8 (more precise about 8.3) Royal Diamonds to get to 50 % to all resistances and that would result in 5 % more magical damage reduction (the 50 % part) or 2.5 % more damage reduction from magical sources.
Or you could use one stat with 4.5% damage reduction to all damage. Because from 50% damage to 45 % damage, that is a 9 % damage reduction to the magical part, 4.5 % to the whole damage would be equal, but much better because there is no hard cap. And 4.5 plain damage reduction is no high roll [3.1 % – 7.3 %].
My conclusion.
Why do you think 60 % resistance should be a hard cap?
For necromancers and sorceresses this is especially hard, because with high Intelligence you are already near the cap. With 1000 Intelligence I can only get between 30 % resistance with no resistances on items at all and under 60 % with as many resistances on items as possible.
That means, putting no magical resistances on items is the best for every sorceress or necromancer.
And all other classes will also profit more from other stats. Maybe some easy to reach paragon nodes will be nice, but on items and gems, resistances are no good option.