These choices will affect "the way pedestrians react to Cole, the powers he can use and upgrade, Cole's appearance, and even the story." As in Fable, any decision you make will award you either good or bad karma. There are six karmic levels: three bad (Thug, Outlaw and Infamous) and three good (Guardian, Champion and Hero). Each of these levels will contain different skills which can be bought with experience points. Placing points in a Champion skill and then lowering your karma level to Guardian means you will no longer have access to that skill.
Cole will change his appearance according to his karma level (again, much like Fable) and depending on whether he's a goody or baddy, his electricity will appear either red or blue. Upgrading your powers in either a good or evil direction will directly affect how they work. Good powers use electrons and are more likely to stun or restrain enemies while bad powers utilize positrons and will kill, maim and destroy. The second video, seen after the break, shows examples of this.
Seeing this system in action raises our hopes for inFamous. The game was starting to look very samey, but this added ingredient may be just the spice we've been looking for.