We discuss work carried out at the University of Salford (UK) and INESC-id (Portugal) on the design and implementation of interactive dramas in 3D graphics environments. We present detailed requirements and methods for the design of unscripted (emergent) dramas based on research into role-playing games. We describe the affectively driven intelligent autonomous characters implemented and discuss both theoretical and technical issues relating to its computational implementation. Finally we consider the implications for game design and new genres of game.