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The creators of the Elder Scroll series happened to reduce the size of the game worlds from iteration to interation, with the explaination the game world was much more finely crafted.  Well, if this trend continues, there would have to be a place where they won't get any smaller.  So, while it is absurd to think of a version of the Elder Scroll series taking place in a closet, what would one expect the size of the game world to eventually get down to?