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Yeah, i've read it. It explains how the empire has basically collapsed because many of the nations pulled out of it, there is however a new emperor. Also, since Vivec for some reason mysteriously disappeared, the Hall of Ministry crashed into the city of Vivec, killing everyone which gave the Argonians the chance to retaliate for all the slavery, and they drove the Dunmer completely out of Morrowind, the ones left alive fled to Solstheim and perhaps Skyrim.
So unless they moved back to Morrowind, there will probably be a lot of Dunmer in this game