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While System Shock 2 represented what Irrational general manager Ken Levine describes as "a convergence of technology and commercialism" (that game took place on a corporate-sponsored starship), BioShock will instead represent "a convergence of technology and biological life," or more specifically, genetics. It's important to note:
BioShock is not a sequel to any of the System Shock games, nor does it have any official relation to those games. But like the previous games, this one will offer a horror-themed gameplay experience in which what you observe, and what happens to you, will be tempered by your own choices. "[At Irrational], we think emergence is the future," says Levine.
BioShock takes place in a mysterious genetic laboratory. Other than that the complex is strewn with corpses (also for reasons unknown), nothing is clear to you. From what you can tell, the laboratory complex is apparently a holdover from World War II--you'll see remnants of the war as well as peeling paint throughout the complex. Something apparently happened back then that caused the complex to be abandoned by whoever was using it. In fact, the complex has only recently come back into use by the scientists circa the early 21st century, and advanced, top-secret contraptions used for arcane biotechnology experiments have been hastily bolted into the rotting walls of the complex.