can someone explain what this is how it works and what its for thanks

No in game level editor, you can build houses / bases out of modules, if you have the skill and resources. You also have the construction set who is an external windows program used to make content in the game.

Judging by the demo you use a wrench to kinda activate a builder mode, you then can walk around and salvage environmental stuff like old tires or even whole houses (I assume there will be a limit how far from the bench you can do this) and then use recipes to craft house parts, furniture etc. If you want to you can also build more then just your own home and make a settlement for npcs.

Well we might be getting mods to Xbox One, so who knows?

You will be but you won't be getting the GECK.

Definitely true. It'll be hugely dumbed down. Still, it's nice to see consoles finally get some sort of support, limited though it may be.

I'm pretty sure consoles won't have access to any sort of editor, only access to PC-made mods. So, I'd make a mod on the PC, and somehow make it available to everyone on the consoles. Probably through Bethesda.net, or a console parallel to the Steam Workshop.

Porting the editor to the consoles would be so much work, and it's definitely not something you can do easily (or at all?) without a keyboard and mouse.

Not so sure. Because of performance restrictions, it's very possible Bethesda would be forced to use a custom editor of some sort to enforce certain guidelines regarding the mods. I'm thinking that it could very well be a very basic drag/drop thing, and maybe limited texture swapping. It's hard to say.

World/cell building is fiddly enough with a mouse and your nose 18 inches from the screen, doing it from across the room using a controller would be a nightmare.

They've already said what's going to happen, mods will be made on the PC with the GECK and authors can then make them available for the Xbox via Beths site.

Yes but what about small things like the FOSE which is manditory for a lot of mods?

Really? Interesting. I'm curious to see how well this will work/crash and burn...

No script extenders, third party tools, etc. are allowed. This will limit the variety of mods.

Definitely simpler mods can be used on X1. Lack of management tools and limited hardware resources ensure only simpler mods can be used.

So am I, the Xbox hasn't got a lot of overhead for mods, it wouldn't take much to turn the game into a slideshow. If they've got any sense they'll put limits on mods for the Xbox, textures sizes and that sort of thing, texture size checking would be easy enough to automate, the other frame rate killer won't though, scripts.

Should have plenty with overhead as long as you don't go crazy. Few of the mods outside of high resolution texture packs has high system demands.
Yes some dungeons and stuff used custom high resolution textures. However this is mods who would not work on lower speck pc's either.

As for script extender its some chance many of the FOSE functions will be ready in the API, as an pc only player i love the idea of mods on consoles.

it makes mods far more of an official thing who will get attention and not only an fan service.

No really, there isn't. Developers push consoles as hard as they can, that leaves little overhead for mods. Scripts are going to be the problem, the CPU in the Xbox isn't the greatest in the world.

I imagine consoles can get console commands in a backroad sort of way.

Making a mod that adds exp through a dialogue or item wouldn't require FOSE would it?

It won't be ideal obviously but adding some NPC that gives the player 1 million caps is possible without using anything outside of the game files right?

Or one that reopened the special menu at the beginning of the game to tweak your face/stats?