
Fuzzy-Wuzzy |

Armor and Weapon Sizes: Armor and weapons that are found at random have a 30% chance of being Small (01–30), a 60% chance of being Medium (31–90), and a 10% chance of being any other size (91–100).
But you can make them (or have them made) at any size you like.

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Not RAW, but in our game, to keep things simple and not penalize small versus medium characters, our GM simply uses a rule that magic items re-size for the user. So you don't have to worry if that magic cloak you found is medium or small, any character can use it.
I haven't noticed anything game-breaking in the house-rule and Golarian is a High Magic world after all!

Fuzzy-Wuzzy |
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Wasn't that the way they were characterized in 1e? Or am I remembering a house rule from my first DM that I carried over?
That's the way almost everything else works. From just before my previous quote:
When an article of magic clothing or jewelry is discovered, most of the time size shouldn't be an issue. Many magic garments are made to be easily adjustable, or they adjust themselves magically to the wearer. Size should not keep characters of various kinds from using magic items.
Not sure why armor and weapons are exceptions.

Pizza Lord |
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Not sure why armor and weapons are exceptions.
Political and economic balance reasons probably.
Would dwarves or humans want smaller races like goblins to be able to just pick up their magic weapons and use them against them with ease, or have a giant or ogre scoop up a magic club or bow? Or would a dwarf want a drow to be able to just take some dwarven plate and use it (granted, a drow and and a dwarf are both medium, but since the armor doesn't resize and their body shapes are considerably different, they shouldn't be able to just wear it any more than a winged creature can just put on anybody else's shirt without ripping it or altering it.
As for balance purposes, otherwise every race would just make small versions of weapons and armor and not only would the costs be less for the base weapon but there are certain special materials that cost by weight or size, and just magically resizing them universally because they have a +1 enhancement would allow a lot of potential abuse (cost-wise). While most special materials have a flat cost for making a weapon (which can be baffling at times itself since some weapons should use way more material), others, like mithral or cold iron are based on item weight (or base weapon cost, which is based on weapon size). Other than the rare case of maybe running into an antimagic field, who wouldn't make small weapons and armor to save cost and material weight? Most GM's probably don't even enforce having normal magic items resize when temporarily suppressed.