So I was just wondering if the Diablo 3 team thought up this idea by themselves or possibly got a little spark from a game called Kirby Airride or some other game.

Because There is a creature like thing in the game Kirby Airride that has the same basic concept as the Treasure Seeker, Randomly appearing from time to time and everytime you hit him with your Airride he drops tons of power-ups and more with each hit.. Except in that game he drops power-ups not huge axes made of iron and steal. lol.
But the second I saw the Treasure Seeker it made me think of the Bandit in Kirby Airride. (this game is for Gamecube btw)

Anyone else think of the same thing?

Here is a video of what im talking about --> http://www.youtube.com/watch?v=AQn8lYkfHl0
toward the end he finds Tac and gets tons of power-ups for hitting him

Yeah, it's inspired by the little bastards in Golden Axe you'd wake up to stealing your stuff and have to kick the crap out of them.

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Q u o t e:
I hope the whole "better loot with each hit" thing was a mistake, because then you'd have players spending minutes cherry-tapping him over and over.

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Think of it like he has 20 loot drops in him total, not that there's some cooldown period. There's no cooldown, he tries to run away and portal out, so you gotta get all those 20 drops out of him before he does. It's not really tuned yet, people that saw him in the BlizzCon demo can probably attest to how easy he way to finish off with a caster.

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Q u o t e:
It's definitely not done on a per hit basis I'd say. There was times where I killed him super fast and he just exploded into loot. There was only one time where it took a bit longer and it was definitely the same amount of loot.

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It might be set by damage threshold, I'm not sure actually. Needless to say the little guy wasn't really tuned. :)

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Q u o t e:
I believe the words you are looking for are scaled dps.

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Not I.

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Q u o t e:
It wouldn't be scaled?

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Wouldn't be and was are too different things. I'm only speaking of how he functioned in the BlizzCon demo. Feel free to think about how he could be balanced for release, though. Of course.