Funny you say that. For Elder Scrolls 4 (Oblivion), the devs claimed to have built something like this. Where all the NPCs had their own wants and needs and schedules, like The Sims. Everyone needed to eat, but not everyone had a job. So some NPCs resorted to theft. But since crime and witnessing crime was already a system programmed in to the game, this often meant that by the time a player arrived at a town, everyone was dead. Some beggar took a bread roll from a shop keeper, who alerted the guards, who confronted the beggar, who responded with violence, who started a scuffle, which had collateral damage (many people have fireball spells), which lead to a free for all of death. It ruined the game, and they had to scrap most of the system.