I hope they use some kind of weapon system like in Borderlands.
Instead of creating one "iron sword" model, they create
- 5 different "Iron Sword Handle" models,
- 5 different "Iron Sword Blade" models, (could be rusted, serrated and with a different shape; Lean, double-edged, cutlass, short, broken off)
- 5 different "Iron Sword Crossguard" models (that's the thing over your hand).
These pieces are then randomly put together and the sword's stats are based on it's parts;
- A sword with a light leather and wooden handle will be faster, but have less durability, a sword with a heavy handle will have more stability but slower swing speed.
- A sword with a serrated blade deals more damage, but has much less durability, a sword with a lean blade is faster with slightly less durability.
- A sword with a lean crossguard has more speed, less durability. A sword with a heavy crossguard has more defense and durability
I'm not that great at math, but if it has 3 components with 5 variations each, that's 5x5x5 = 125, right?
So basically, instead of "Iron Sword" with 4-5 damage, 40g sell price, they make over a hundred different Iron Swords that are both statistically and visually different and they only have to create 15 SMALL models, then the same with with Glass Swords, Mythril Swords, Iron Daggers, Glass Dagger etc. etc. etc.
The amount of work required for this is really not much more than Oblivion's, making smaller parts is much faster.
With the 9 different metal levels from Iron to Daedric that would mean over a thousand swords, and don't get me started on maces or daggers.
Just imagine going into a cave, killing 50 bandits and not a single one of them has a weapon that you've already seen.
Add magical enchantments to that and.. phew..
Borderlands got I think a couple of million different weapons with this system, randomly piecing together weapons in real-time in the engine.