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Original post by Sandman
My advice would be to let the player decide what his character's alignment is. The game can keep track of what his alignment appears to be to the game world. This means that you can modify the NPC's reactions to the player according to alignment, but you can't modify the player's reactions - the player still needs to be free to choose the Evil option no matter how saintly the game thinks he is.
Rather, let the game track what the PC(s) reputation is, rather than alignment. It is quite possible to be working towards a very evil goal while maintaining a basic front of good. I dislike using strict "alignment" systems myself, and instead focus on writing and content. I'd have to spend the next three hours to explain how I'm doing so, and I'm not doing that tonight, so I'll leave it at that.
I'll agree, alignment, or rather moral value and "good and evil" are hard to build simplified mechanics for, without either half ignoring the mechanics to fit the story, or compromising the story in order to fit the mechanics.