I mostly listen to 90's dance music while playing or the OST of Age of Conan. But recently I listen to the OST of Conan the Destroyer while PvP'ing.
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"I am a nightblade. Blending the disciplines of the stealthy agent and subtle wizard, I move unseen and undetected, foil locks and traps, and teleport to safety when threatened, or strike like a viper from ambush. The College of Illusion hides me and fuddles or pacifies my opponents. The College of Mysticism detects my object, reflects and dispels enemy spells, and makes good my escape. The key to a nightblade's success is avoidance, by spell or by stealth; with these skills, all things are possible."
I've always ended up in a weird place, because I added that, Guild Wars, and Planescape Torment's soundtrack to Oblivion, and I have a completely warped sense of what Elder Scrolls music should sound like now.
I have my music on, but very low. I'm in teamspeak often and I can't hear my friends over the sound of the game so keep it low for that reason. I will occasionally turn it up if I'm just doing things on my own. The soundtrack is decent, but as mentioned above there are some great alternatives to the in game music.
I like to hear every move my opponent makes. I have heard gankers buffing in stealth due to keeping the music off, and have dodged a snipe as I was riding my horse in Cyrodiil.
The music and sound effects are some of the best bits of the game, also noticing when they tweak sounds and add new sound effects etc is really interesting.
Also the tonal changes that occur when you or others are spamming anything,, they make it so it sounds like music rather than the same noise over and over again.
Listening to the changes in wildlife calls in Cyrodiil during the day/night cycles is really cool too.
Thought my years with MMOs, I've always turned the music on and off depending on where I am, what I'm doing, and what my mood is. Thankfully, ESO has add-ons so I could create one to add a chat command to toggle it on and off easily. Boggles my mind why they couldn't put that in there by default.
Always on. It's one of the best parts of the game and normally I don't even notice it, but when you're fishing and the only sounds are the running water and/or flopping fish and the music is going it's the most tranquil experience I've ever had in a video game.
Depends. Nowadays, it's been mostly off because I'd rather listen to something upbeat. Like rock gaming playlists or something. On my days off I start my ESO sessions at the same time I'd need to get up, if I had work that day. That's 3:30 AM, the music would just put me back to sleep.