Where did bethesda get this lore filled world?
Did someone already make it for them or did
they make it from scratch?
Target five dollar bin.
But no, seriously, they came up with all of it.
Well..sort of. Not "all of it." It's fantasy genre. It's very contrived, overall. But not nearly as cliche' as some series' lore.
In Arena it was pretty basic stuff actually. Could have passed for a decently made DnD campaign, but it was very cliche'. At that time most everything's pretty much what you'd expect it to be. Orcs were just bloodthirsty monsters for instance. It wasn't until Daggerfall and especially Morrowind that things really began to take on their own flavor.
I suspect such expansive and unique worlds take time, the collaboration of talented minds, and in MK's case several mind altering substances in order to acquire all the elements that make them what they are.