I had an entire post written up and this [snip] forum lost it, so here's the condensed version:
Step 1 (Upper Left Corner)
The crafter has in his possession a level 22, rare-quality, dark-elf style maul.
Step 2 (Transition to upper right corner)
By adding the appropriate type of crafting material (in this case the level 16-24 material, steel), the crafter is able to upgrade the level of the item. This turns the item into a level 24, rare-quality, dark-elf style maul.
This step would require the correct passive skill point investment in crafting. In this case, you would need the
Metalworking: II passive in the blacksmithing skill line, which allows you to use steel ingots to create level 16-24 items.
Step 3 (Transition to bottom right corner)
To ugprade between material brackets (from 24 to 26), the crafter adds the next type of material: in this case, the level 26-34 material, orichalcum. This turns the item into a level 26, rare-quality, dark-elf style maul.
This step would require the correct passive skill point investment in crafting. In this case, you would need the
Metalworking: III passive in the blacksmithing skill line, which allows you to use orichalcum ingots to create level 26-34 items.
Step 4 (Transition to bottom left corner)
By adding a style crafting material (in this case the orc style material, manganese), the item maintains its stats but is converted to the desired appearance. This turns the item into a level 26, rare-quality, orc-style maul.
This step would require knowledge of the desired style, meaning you'd need to have used the orc racial motif to learn how to craft in the orc style.
What this accomplishes:
1. Crafters will no longer have to waste valuable upgrade materials (the materials used to upgrade an item's quality from common to fine, fine to rare, rare to epic, epic to legendary) when levelling up their character; instead, they can simply upgrade the item with base resources. Now, a player who has poured thousands of gold into a legendary veteran rank 14 weapon wont have to give up that weapon completely when he reaches veteran 15, or veteran 16; he can simply upgrade it to the next level with the materials found in the imperial city.
2. Crafters will be able to modify the appearance of an item, whether crafted, dropped, or received as a reward, to fit their characters. If a player gets the warlock set and doesnt like how it looks, he can use this system to alter it into, for example, khajiit light armor. This system is already present in-game in the form of the imperial edition upgrade, which allows players to convert any item into the imperial style. There's no reason it could not be applied to the crafting system in the manner proposed above.
[Moderator Note: Edited per our rules on Cursing]
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