Half-Life 2 is a great way to view it, and that game really set the "use physics benchmark.... We're obviously using Havok, as they did, and we've done some other cool things with it, like arrows sticking in objects and reorienting the weight of things they stick in. I think the big thing we're learning with the physics is that with an RPG, there is soooo much you can do with it, like traps, stealing things, and more. Things like Telekinesis spells, picking up stuff far away and trying to manipulate the environment to throw off the NPCs and such. Paralyzing guys and watching them fall down stairs never gets old.

GCM: Oblivion is scheduled to be released for the Xbox 360 and high end PC’s. Will it be a launch title for the 360? What sort or system requirements will be needed in order to run Oblivion from a PC?

Todd Howard: We’re shooting for the holidays, but can’t give you an exact date yet. As far as system specs for the PC… you know us! If you want the full-on graphics, expect to buy the best thing you can when the game comes out. We plan on having it run on as many systems as possible, but it’s too early to say how far we can drop the spec right now. We do have that as a goal – having it run on a wider variety of systems than Morrowind did.

"The presentation had us wading through a lush forest. Since these are huge, dense forests that can make even the most experienced explorer feel lost, a scrolling compass will be set at the bottom of the screen which directs the player to points of interest. Use it to move about and encounter new things. As we moved through the forest, a deer frolicked past. If you so chose, you could kill the deer for its meat. Eat it to regain health or mix it with other items, such as wild mushrooms, for specific potions. There will be a huge amount of different combos that can mixed that do different things."

"XE: At this point, what percentage of the game would you say is done?

Gavin:Obviously we're pretty far along since we're planning to be done in time for a "holiday '05 ship." Much of the world has already been build, quests are in, etc. We have to finish putting the rest of it in and then spend the remaining time testing, tweaking, and tuning until it's finished. I could make up some percentage, but it wouldn't really mean anything."

"The only exit out of the castle is, conveniently enough, found in your cell ('All of our games seem to start in prison, I'm not sure why,' Howard joked), so the guards order you to stand back, and you can follow them out of the prison. You get the opportunity to chat with the Emperor, voiced by Patrick Stewart, and learn that his sons have already been killed. He doesn't seem to think you're such a bad sort, which only adds to the mystery of why you're imprisoned—and why these guards don't seem to mind letting you out."

Xbox.com: "In Morrowind, we saw the homeland of the Dark Elves. Is Cyrodiil (the setting of Oblivion) considered the humans' home territory?"

Carter: It is, basically. "It's a lot more courtly type intrigue. Each town has its own 'count,' and with the Emperor gone, there's a whole lot of warring politics—what's going to happen to the land, what's going to happen to the throne, what to do about the invasion."