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Are you sure you're not talking about the funeral event where one of your siblings says your father wanted them to inherit, not you?
No, it is a different event. The two are very similar, so I can see why you might think that is what I am referring to. I don’t remember the last time I saw the event, but I believe it can fire if your primary heir is inadequate (like is lazy) or if your primary heir isn’t your kid because of senior house succession. With the ability to designate co kings, this event might become even more rare.
 
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Specially when your dynasty have something like 3k+ people.

Then it turns more like a house genocide
I had a house feud with a house of about 20+ people. Switched to intrigue and killed off all their adults in one generation. My next ruler finished the job. My 100+ person house lost one person, and I'm not entirely sure it was them.
 
As strange as it may sound, but I think the game lacks the wish system from....the sims 2.

Positive sides - there are many and here are just a few of them

This would give reasons to carry out some events that you would never do without reason. For example, a brave character wanted to carry out a hunt to get adrenaline. A touchy sadist got angry at his son's bride and decided to arrange a bloody wedding for her. This wish system would tie activities and events to spontaneous wishes that you would never remember. This is a good challenge in choosing whether to put money aside for an event, follow the character's bad traits or endure them.

This would make the stress system more dynamic and dangerous. Not fulfilling these wishes you get negative events and stress, but somehow balancing the positive sides of your roleplays you can cope with the persistent desire to beat your vassal or arrange a bloody wedding. It would be a good part of the stress system rework.

It would eventually make more sense to make and interact with friends and lovers. For example, a lustful character wants a new lover more and his stress level increases every month from this. And this is a new layer of gameplay in a game about personalities and characters. Now, based on the character traits, desires appear, which also affect behavior and allow the game to give interesting stories for you. In the end, we all know that we are playing a "strategic sims for MEN"

This will make the personality system deeper and more interesting than just character trait squares.

The desire system can also interact with the game world as a whole - did you get a rival? Now there will definitely be a reason to conflict with him - because this will affect desires. Did they kill your father? There will be a desire to hold a funeral and take revenge on the killer if you are vengeful (or it will not arise if you have a holy all-forgiving character). A serious decision to create an empire - I want to throw a feast. And so on. There are a lot of interactions and combinations.

AI Characters will become more alive. But of course, balance is needed and a bunch of levers and switches that control how much they are driven by their desires
I mentioned the new stress system. I already wrote how it might look earlier and it is still relevant - https://forum.paradoxplaza.com/forum/threads/new-stress-system-idea-as-of-june-2023.1589429/

It will perfectly make the player's interaction with the character's traits deeper and more interesting, and will make the roleplaying not so extremely simple (now you can almost forget about stress). And it combines perfectly with the character's desire system, which I wrote about above.