So, considering the The Sims game (I haven't played it as yet), would you consider it more of an Interaction Design or Artificial Intelligence concept, or perhaps both?
I also haven't played due my dread of role-playing-games. I'd rather play Need for Speed.
Nonetheless, i think it will qualify as an Interaction Type of game if it promotes interaction of many people and there actually is conversations involved by form of typing them in or using microphones.
I'm not sure if it's happening already as i do not play such games.