A very, very short summarize and anolysis is listed at the very end of all this text. This is basically just an idea, which I thought could be cool to have as a quest, or at least something relatively close to it.
If you don't wanna read everything, read the points that stands out in the short summarize at the end, or simply don't read it at all... still, I thought it would be worth sharing here, in case the devs are in a desperate need of quest stories and want a kinda big one!
It should be noted I've not thought of everything, sometimes I've just suggested something. I'm sure there are a thousand other ways to make think of a quest story like this one. This is just one of them. Also, sometimes my English isn't the best. I wrote this kind of fast... there might be spelling mistakes, etc
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1- You talk to some kind of guard officer, or higher ranking person in the Legion. He asks you to investigate and aid a pretty small, rebellious Dunmer town near the borders of Morrowind, called Reveron. They are under attack, but are too proud, and hate the Empire and everything it stands for. If the Empire would have marched in and helped them, the citizens of Reveron would have most likely attacked them. There is a long history of feuds between the Empire and the town of Reveron. By whom they are under attack is not clear. The Empire tried to help them before, but they refused it and attacked them. The attacks have been going on for many years, but have been becoming a lot worse recently.
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2- You arrive at Reveron, proposing yourself as a traveler or adventurer that heard of the rumours of the attack, and you ask if you can aid them. You talk with the "Elder" of the town. You are basically working "undercover" to aid them, and must not reveal yourself as being sent by the Empire. They test your loyalty, by forcing you to do some sort of mini quest. It could to retrieve something lost in attack, or etc. While you do that, Reveron gets attacked again. When you come back, a few people are dead.
- I think the best attacker in this quest, and most suitable for Skyrim, is werewolves, or something like that. Undead could work too.
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3- You talk to the Elder again, and he tells you what happened (they attacked, killed, etc). He finds that you have proven yourself loyal and asks you to visit an old hermit wizard (or warrior, that works too), that lives outside the town. This warrior/wizard is an outcast from the town of Reveron, supposed to know something about the attackers. He has a lot of knowledge. The reason the Elder directs you to this warrior/wizard is because you are new, and you do not have any connection to Reveron. The Elder mentions that the warrior/wizard tried to tell something about the attack to them before, but that he insulted them. The people of Reveron felt insulted because the warrior/wizard said that something very sacred to this very town was causing the attacks. They didn't want to believe him, and thought he lied, just because he dislikes them. The Elder thinks he knows more, the real truth, and that what he said before was a lie.
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4- You arrive at the wizard's/warrior's house a bit outside Reveron. You inform him that you are a traveler/adventurer wishing to aid. He understands this, and tells you the very same thing as he told the Elder before. He tries to explain it.
Something very sacred to the belief in Reveron is the cause of the attacks. I think this sacred thing could be some kind of promise to Azura/Hircine, or it could be their former leader/founder of the village. If it has to do something with Azura/Hircine, then the town should also before emphasize how important Azura/Hircine is to them. The warrior/wizard speaks in riddles, but tells of a cavern (perhaps the name could be "Cavern of Truth"), near the mountains, where the truth lies hidden. This location of the cavern is in riddles as well.
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5- You hear a howling (if the attackers are werewolves), or an undead scream (if the attackers are undead), when you are on your way back to Reveron. It is under attack again. This time the attack is a major one, perhaps the biggest ever.
You aid the people of Reveron in the defense. Some people you met before will die, but not the Elder. After a big battle you will succeed and talk to the Elder. Frightened as he is, you get some choices:
5A) either you inform the Elder of what the wizard/warrior told you. The Elder will become offended by this, but will ask you to find the cavern anyway, because he is desperate of aid.
5B) you lie about what the warrior/wizard told you.
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6- You think about the riddle, and use it to find the cavern, where you fight more enemies that you fought before in the defense of Reveron. The cavern is deep, but at the end there is... (two options)
6A) …either an ancient book, containing the truth (therefore the name "Cavern of Truth"?) of what's so sacred to the belief in Reveron. It could be, as I mentioned before, some kind of promise to Azura/Hircine; a promise that has been broken, perhaps by hating the Empire somehow, and therefore the town of Reveron is punished by the God Hircine/Azura. The people of Reveron refuse to believe that their own sacred God could do something like this. Your mission is to convince them after returning to Reveron about the Truth, and therefore relieving the curse put on the people of Reveron. This could be perfect of explaining why the attackers were werewolves specifically.
6B) …either a friendly boss (you get to talk to him), that could be Reveron's former leader/founder, who is thought very highly of by the people of Reveron. He is dead, and is now undead/werewolf. He is cursed by Azura/Hircine to forever attack the town of Reveron in the shape of a werewolf/undead, until the Truth mentioned above in 6A is revealed and believed. The people of Reveron refuse to believe that their own sacred God could do something like this. Your mission is to convince them after returning to Reveron about the Truth in 6A (broken promise to Azura/Hircine or hating the Empire), and therefore relieving the curse put on the people of Reveron.
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7- Near the boss, lies the Sword of Truth (or another special name). This sword bears the mark of Azura/Hircine. If option 6B (above) is followed, then the friendly boss asks you to once and for all end his pain, end his suffering of attacking his own beloved town, and stop the attacks once and for all. The reason this can be done is because you have to kill the friendly boss (former leader/founder) with the Sword of Truth (or another special sword name), otherwise he cannot be killed.
You can either do as the friendly boss (former leader/founder) pleads you to do, or you can leave him alone in this now lonely (since you killed all the other enemies in there), dark cavern.
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8- You, however, grab the sword of truth (could be attached to you as a quest item) if you followed option 6B in any case. If you followed option 6A you grab the book. In both cases you return to the Elder in Reveron, where you… (three options):
8A) …either tell the Elder what happened and what you found. This could be either the book if you followed option 6A, or the Sword of Truth (or another special name of the sword) if you followed option 6B. The Elder believes your story, he believes the Truth, which he tells his people. They trust him completely, they believe, and the curse is finally lifted. He thanks you greatly and asks you to give him the Sword/Book. You can choose to either kill him or give it to him. If you kill him, you obviously get to keep the Sword/Book. If you give it to him, you get a nice reward anyway from him. It should be an ancient artifact, somehow related to Azura/Hircine, and very important to Reveron. This artifact should give some kind of sense that you did a noble thing, the “right” thing.
If you give him the Sword/Book, you should be titled “The Hero of Reveron”, by the Elder and the citizens. You will be praised. Everyone is grateful.
If you kill him, you name yourself “The Hero or Reveron”. The citizens will be suspicious, since the Elder is missing, but grateful for that the attacks stopped.
8B) …either lie to the Elder what happened and that you found nothing. You lie that you killed all the werewolves/undead in the cavern, and that they won’t be coming back. However, this is untrue, since they will still believe/follow a false truth (as mentioned in 6A/6B) . Therefore, the curse is not lifted, and the attacks will continue. Eventually, Reveron will fall, and everyone will be dead.
You mention nothing of their former leader/founder, if you followed option 6B. After this, you can perhaps even lie that the wizard/warrior was in collaboration with the attackers. This would cause his house to be raided, and he would die with great pain. In any case, you get to keep the Sword/Book no matter what, since you don’t mention them. The Elder rewards you with another ancient artifact than in 8A, somehow related to Azura/Hircine, and very important to Reveron. This artifact should give some kind of sense that you did a bad thing, it should perhaps be a bit “darker”.
If you follow this option (8B), you should be titled “The Hero of Reveron” by the citizens. They will be grateful for the short time they will live, since the curse is still not lifted. You will be known to have aided the rebels yourself, and the Empire will not like this.
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9- Finally, you return to the guard officer or higher ranking person in the Legion. Depending on what choices you made in 8A and 8B, he will treat you differently. For 8A, he will be grateful, and reward you with something pretty nice. For 8B, he will dislike you greatly (perhaps even attack you if you mock him and go against his will even further, and if so, you get the reward he would otherwise give you).
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This quest story contains quite many moral choices as you’ve seen. It contains a curse of the town that causes the attacks. It contains a false sacred belief/truth that is, in turn, the cause of the curse. I think this could be connected, as I mentioned before, to how they hate the Empire, or how they have broken a promise to Azura/Hircine. I haven’t thought of any more details of these aspects yet, though. The choices you make have consequences. There are rewards and secrets, which you can either keep to yourself or reveal or give. The title “The Hero of Reveron” is supposed to symbolize that, depending on what you do, you will be seen as a different hero for the people of Reveron, sometimes only for yourself, sometimes for others. In all cases, you will be titled as the hero, but it definitely doesn’t mean the same thing in all the cases.