There's a good article on the future of emotion in games at MSNBC, featuring Ion Storm's Warren Spector and our friends Michael Mateas and Andrew Stern from Grand Text Auto.

The article both mentions and shows a screenshot of Facade, the interactive drama Mateas and Stern have been working on for the past four years or so. Facade is also an Independent Games Festival finalist this year.

From the article,

I know many of you haven't had a chance to play Facade, but it's really quite a departure from other games; the player gets a sense of trying to get inside of the emotional disturbance in the characters' lives. Those of us used to Eliza and her many kindred will see how Facade progresses the player through a story encounter, rather than responding to cells of dialog like other AI gags. If you're coming to GDC in March, I encourage you to try out Facade on the tradeshow floor, along with the other IGF finalists.