Yes, it is very possible.
This was an elven faction in E:wom that will be ported to FE
http://img245.imageshack.us/img245/3342/elemental1286540031.png
Heavenfall. Would be great if you made a faction that is stronger than the others. An unbalanced one I would then play as a normal race in a game with many AI`s, and know that one faction is likely (but not certain) to dominate. Would be interesting
"ie. A Third Faction to Empire / Kingdom"
As in Empire/Kingdom/Republic?
No, you cannot add that type of faction. But, you can call it an empire or a kingdom and replace EVERYTHING IN IT. In short, what do you hope to achieve by calling it something else?
Edit: Actually, you may be able to create your own basic faction like that. I have no idea.
Sorry, not interested in doing that. It would be very easy to make yourself though.
Probaly I just misread the subtitle of the thread?
I think you can. What is the MyGames\Elemental\RaceTypes folder for then... I believe the devs have mentioned that you are supposed to be able to add a new team, but since no one has apparently ever tried maybe they never got it working in WoM?
Well, I tried changing <FactionAllegiance>Kingdom</FactionAllegiance> in a modded faction and I couldn't discern any difference, everything still seemed to be working. But really, the only benefit I can think of for doing this would be the Emnity trait that increases damage towards other "factions" (empire/kingdom). Everything else - and I do mean everything else - you can replace while still calling it a kingdom or empire.
There are more than one folder that doesn't serve any purpose. Racetypes actually exist though, they are what you can create the custom factions from. When you create custom factions, you don't actually base it on an existing faction. Rather, you base it on a racetype. They are usually so similar that it is impossible to see a difference. But, by not having a racetype to a certain race you can keep people from making their own faction using that race.
What about if you wanted a group that had it's own hero pool and couldn't recruit from the other two?
I think it would work (its impossible to test atm without mod workshop), but you wouldn't get one at your start, those seem hardcoded.
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