"I see you have been speaking with Teinaava. What he says is true. All our lives we have lived together in the shadows. We are egg mates. Twins...."
Curtosy of Ocheeva from Oblivion :goodjob:
That would certainly seem to indicate that they lay eggs, I think, still, I don't recall ever reading anything clear on the subject one way or another, but certainly, the term "hatchling" would seem to indicate hatching from eggs, although it could just be Bethesda playing around with the whole reptilian theme when writing the dialog, I see little logic to using that term if no hatching is involved.
Though Mehrunes Dagon's theory would also seem potentially plausible, at the very least, it would seem like a practical setup, but I don't recall ever seeing anything in the lore to indicate it, I guess that just shows how little information we have on Argonian reproduction.