Games studies today are characterised by both the novelty of interpreting the unfolding digital revolution, and insecurity about where the discipline stands in terms of other academic fields of inquiry. The ludology/narratology debate exhibits two important features: anxiety about the proximity of the discipline to the games industry, and a formalist bias that dominates the field. Focussing on race and alignment in role playing games, this paper addresses this bias by asserting the relevance of cultural materialist and postcolonial modes of critique to commercially-produced computer games. It is argued that games like Baldur’s Gate I and II cannot be properly understood without reference to the fantasy novels that inform them. When historicised, the genre of fantasy reveals an implicit reliance on notions of race and moral alignment. The ways these notions re-appear in digital role playing games is shown to be relevant to current political and social realities of the West.