thats actually not standard blow but special attack for drowners (they deal extra damage with it, per xml files, same for charging jump with a strike).. anyway, based on this video, its practically milimeters away from the Geralt at the point of the hit... hardly something that makes W3 unplayable... plus, if you knew how to dodge (always sideways, never backwards), that drowner would not land a hit on you.
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btw, that particular hit, connects.. just check it on slow mode - made a circle for you -
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drowner hits you with his claws, which are at the end of his arm...
and personally, i would just prefer if Geralt swords were hitting enemies at a bit longer distance.. after all, tip of the sword should be at much bigger distance than claws of drowner - sword tip is cca 100cm away from arm holding the hilt, while drowner, even if he has a bit longer arms, should never have same reach as a man with a sword... yet, this is something that can be adjusted by modding luckilly (there is a rune for exactly this in Heart of Stone, that extends hit area for Whirl, i think it should be possible to add the same ability to base attacks as well, with a bit smaller value)