Ultima X: Odyssey Interview, Part Two
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Q: Are magical items randomly generated, or are they predetermined?
A: They are randomly generated from a huge list of magical properties, so you don't have to camp the same group of monsters for hours on end just to get a cool sword. In addition to properties that add to damage, defense, and give you bonuses to your stats, there are many other special properties. Some properties may increase your luck, giving you a better chance at finding loot, give you a hit point bonus when the weapon is used to strike down an opponent, or even increase your running speed.
In addition to the magical properties, some rare items are actually intelligent. These items gain levels as your character advances, allowing you to enhance the magnitude of their properties. On top of that, some items can also be imbued with special Virtue powers, adding to their power and uniqueness even more. You'll gain different Virtues (such as Compassion, Justice, Honor, and Sacrifice) as you complete quests. These points can be spent on your character to learn Virtue abilities, or they can be spent to add permanent powers to an item that are otherwise impossible to get. Any item type, from weapons, to armor, and even jewelry, has the potential to be intelligent or imbuable with Virtue. An intelligent, virtue-imbued item with good magical properties will be a highly prized item!