Board Thread:Lore Discussion/@comment-25291590-20130317093523/@comment-9887604-20130703131443

If an Elf and an Orc did stuff you would simply get an Orsimer, or an Elf depending on the mothers race.

Goblins are a beast race, where they come from is a source of debate the redgaurds explain them however they seem to come from outside the normal dimension.

"They learn from the blades and together wield the force of the 5 swords to seal the rent in space time that the Goblins have made and from which springs their invasion. Hallin's companions avoided blinding by the magic swords by hurling the swords together into the void, and sealing forever the giant Goblins in the void between their world and ours"Notes for Redguard history

After this event the goblins lose their size, and a significant amount of intellect.