To be clear, the first option is something we've wanted to do for some time. This is an excerpt from our Fallout 3 fan interview with Todd
If/when it happens is still in the air. It'd definitely be cool to see the amazing mods you guys make on consoles.
So lets say this could happen and technically work.
Wouldn't you guys at Bethesda worry that many mods would just crash the consoles?
I mean the game must be running pretty tight already with the console hardware being limited.
Imagine some console player downloading a high-res texmod that will make his game run down into a crawl, or some mod that dramatically increases the amount of enemies etc and same end result.
What kind of implementation would you have to prevent these issues which undoubtedly MS and Sony wouldn't be happy with.
I guess some modders might focus on console modding and try and make it work, still hardly a safe source, we PC players have experienced mods crapping out and causing conflicts and had to troubleshoot which mod it is etc etc.
I can see simpler mods working fine that just changes stats of colours of armors etc.
Even though it might be cool to bring the mods to consoles for you and the console players I see a potential Pandora's box in the making.
There seems to be a lot of things that need to work across many avenues for this to work.
In any case, I certainly hope whether this works or not that the mod-tools will be fully fleshed out and not gimped in any way, unless two versions released of course.