From the recent 2.3 announcement. The patch is coming early December.
Blizzard wrote:This feature from the original PC game is now coming to console platforms. For solo offline players who want to scale the game difficulty—as well as the rewards—up to eight players, your wish is being granted. To use this feature, players simply need to open their settings menu, go to the “Game Settings” tab, then “Offline,” and adjust the “Offline Difficulty Scaling” slider. Once that setting has been configured, new monsters will spawn with varying HP and reward players with vastly increased experience gains and loot drop rates when defeated.
In the offline single-player experience, the default player setting is “1,” so you will be able to scale the difficulty anywhere between the range of 1–8. For example, if you wanted to scale the difficulty of monsters in your offline session to the equivalent to having four players present, you would adjust the slider to “4”. As in Diablo II Classic, you’ll have to start a new game session to set your preferred difficulty with the slider.
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