Elder Scrolls IV: Oblivion Q&A
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Q: Each race interacted with the NPCs in an altogether different way and allowed multiple times through Morrowind with new content. How have you expanded on this interaction, what affect will it have on the gameplay?
A: On top of the individual bonus powers and skill perks you'll get for each race, your race has an effect on how NPCs will react to you. We build in racial prejudices to some of the races that modify one NPCs disposition to you, or their disposition to another NPC. So, for instance, High Elves are haughty and don't care much for the Wood Elves. So when you see a Wood Elf go walking by a High Elf, the High Elf might turn and look and give him a sneer. If the Wood Elf tries to engage the High Elf in conversation, you're probably going to get a short, unfriendly talk between the two of them. On the opposite side of the spectrum, Khajiits are a tight-knit race, and have a strong positive bonus when dealing with each other. So you'll see Khajiits warmly greeting one another, smiling, and having engaging conversations. As a player, this bonus will manifest itself in better or worse prices from merchants, as well as having to persuade or bribe NPCs who don't like you into giving up their information.
