See also: unlockable costumes, body armor
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There are various uses for clothing in games:
* Player's amusement (character customization)
* Protection from elements
* A sign of social class or wealth
* Fashion style

The best examples are where the elements (e.g. cold) becomes troublesome with improper clothing, characters comment and change behaviour according to your clothing (e.g. some nobleman might not be too keen to befriend someone dressed in furs), and so forth.

Most commonly this is simply to allow players to customize their appearance.
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