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Here's an article from CGScoiety featuring one of the environment artists from Bethesda who worked on Fallout 3. Rashad Redic talks about his experience working in a small production company such as Bethesda and about the Fallout 3 project. Rashad explains that every asset in the game is modeled and placed in the game by hand, nothing is procedurally generated. The team makes sure everything in the design process is carefully following the color palette and art style of the game. It's a nice inside look at art workflow within the industry and how artists like Rashad have to work with contraints and problem-solve their way to meet expectations.