Outdoor scenes will be game-generated and not made by an artist. Terrain will be based on real-world geography and will experience elements of weather and erosion by a system of “procedurally generated” programs. Other changes include the integration of the melee, defense, and magic systems which have been combined into a single system. Another item of interest is the AI. NPCs will have a 24 hour schedule and will have the ability to make choices around them. We witnessed an NPC pick up a bow, practice shooting it (poorly), then drink a potion which improved her shooting, all of which was AI based. It has the potential to be quite impressive, though we witnessed some quirky behavior when that same NPC vaporized her dog with a spell when it began barking too much. Amusing as the encounter was, it was equally impressive of the potential of the AI, though it remains to be seen whether that incident was intentionally staged or potentially symptomatic of an Oblivion devoid of value judgments.