Computerandvideogames: We've heard the PC version will have an advanced physics engine. Will the 360 version also include this and can you give us some examples of how it will affect gameplay?

Gavin Carter: The Xbox 360 and PC versions both take full advantage of Havok physics. We've integrated them into just about every aspect of gameplay. We've got ragdoll physics for dead NPCs and our level designers took advantage of that to great effect. Every clutter item in the game has full physics on it, so you can toss them around, knock them off shelves with your sword, or artfully arrange them in the home you just bought. Wide-area spells will send objects and enemies flying through the air with force and some spells like Oblivion's version of telekinesis are exclusively made possible through the integration of physics.

Xbox.com: One of the coolest parts of the game is the hyper-intelligent NPCs. Mind describing a few characters we'll meet and just how smart they are?

Howard: I wish they weren't so smart, actually. We spent forever making them really smart, and probably the last few months making them dumber, because they like to go off and do things that really mess the world up. A few weeks ago there was an instance where a player dropped the "Skull of Corruption," an artifact that when used on an enemy makes an evil clone of that enemy. He was just testing and wanted to make sure the object used the physics correctly when dropped. So he drops it and an NPC runs up, grabs it, and shoots the player with it—creating an evil version of the player who starts killing everyone. It was hilarious.