From what I have seen in released gameplay vids that is comparable damage to 1h weapons. Steel gauntlets with like a 20 Heavy Armor skill have 14 armor rating. A similar, unimproved steel sword is also 14 damage at 20 1 hand skill. Assuming armor rating scales at the same rate as weapon damage, unarmed could be viable. Weapons will probably pull ahead do to additional on hit enchantments and perk investment, but for only 1 perk you gain a decent offensive weapon that can't be disarmed.



