I have thought about this for a considerable amount of time and I truly believe multiplayer can be implemented into the Elder Scroll games if done correctly. I think multiplayer should come in the form of the arena featured in Oblivion. But instead of only fighting NPCs, you would now have the ability to enter into a match online with another player. There could be multiple arenas all over the Skyrim landscape that offer different kinds of matches and matches with different levels of skill. The arenas would offer an offline experience as well as an online experience. The players access the multiplayer mode by entering a certain door or area of the arena where they would be matched up fairly with a player of similar skill.
The matches would then be one on one battles to the death. The player that wins, could earn money, items, or some other various reward. This can even be expanded upon where the arena matches would include multiple combatants. Right now, one on one may be enough. This allows for people to compare their characters with other players. I often fight with my friend over whose character would win and with this addition, we can finally settle the debate. I'm sure most of you have had this same argument.
I think the arena multiplayer could also be expanded past the physical combat in the matches. I think it would be cool to be able to bet on matches as an observer. Similar to Oblivion where you could bet on matches, but this time you would be betting on actual players. You could view each player's stats and make a monetary bet. If you are correct, you walk away with some ingame money for your character. If you are wrong, then, of course, you lose money.
What do you think? Could this system of multiplayer work in Skyrim?