In the majority of video games I play, I notice that NPC's are the same height. What's up with that?
It kinda takes me out of the experience, when I see ten people in a row that are 5 foot 8. Anyone else notice this, or am I crazy?
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Making all character models the same size has a lot of benefits when doing poses and animations.
Imagine, for example, a sit-down-on-chair animation. A character with longer legs has a different sitting pose than one with shorter legs.
Or a character grabbing something. When the characters have different heights, their hands will be on different positions when they do the grabbing animation, so they might not actually touch the item they grab for.
You could solve this by having procedural animations (inverted kinematics) or by doing the animations for each character individually, but that would be a lot of additional work.
Another thing to keep in consideration is game balance. This is usually not that relevant for NPCs in a single player game. But in a competitive multiplayer game, selecting a smaller character can give the player an unfair advantage because they are harder to spot and harder to hit. So character size is no longer just an aesthetic factor but also a game balance factor. A good example where this was used intentionally is Team Fortress 2. The Heavy is larger than all other characters, so they can use him as cover. The Scout, on the other hand, is the shortest of all characters, which is great for his playstyle which is designed around avoiding enemy fire through erratic movement.