I have a question that is bugging me and members of two gaming guilds I currently belong to.

From what we've read (and please correct me if this is incorrect), whichever race you choose for your first character ties you to a particular faction in the Alliance Wars in Cyrodiil. If this is the case, it's proving to be a major stumbling block for the organisations I belong to because there's no consensus on which races to play. This means unless the guild members all agree to choose a race that belongs to a single faction as our primary character, we won't be able to fight together in the Alliance Wars, which is a deal breaker as far as the guilds are concerned.

Is this still the case or have we missed a development update along the way?

[And that should be GUILDS in the title, but I can't edit it for some reason]

You're right. Each alliance; Ebonheart, Daggerfall, and Aldmeri has three races available to it. Choosing your character's race will limit that character to being active in that alliance. From the scuttlebutt I've heard so far it appears that players will be able to make more than one character, allowing a player to have characters in more than one alliance. Unfortunately, those characters won't be able to interact with characters in other alliances unless they're in Cyrodill, which means they're in constant danger of being PVP'd. The good news is banks are account-wide and don't appear to be limited by alliance.

My old guild had the same issue when WoW came out. A bunch of us wanted to play Horde and a bunch wanted to play Alliance. In the end it got worked out by most folks making alts in the opposing faction so we could all play together at times.

Don't think they've ever said anything about your first characters race determining anything. Simply that you won't be able to be in the same campaign with races of differing factions. Meaning if you have an EB character and a DC character they will be in different Campaigns. Same would go for your guild of course, you won't be able to have multiple factions in the same campaign. So for a guild with multi factions you would also be in multi Campaigns.

http://help.elderscrollsonline.com/app/answers/detail/a_id/2745/kw/campaign

Thanks guys,

So it'll just be a case of having to create at least one character in each alliance. That's a still a lot of levelling for a player guild and a spawning ground for spies, infiltrators and griefers who play other races to support their primary Alliance.

It'll be interesting to see what Zenimax comes up with to prevent that.

Well a main reason I see for not being able to be in the same Campaign is to prevent a guild or group from taking over a single Campaign and dominating it and creating an unfair experience for others. Spying and such will always happen, this way it'll just be harder and less useful with the way ESO has it set up.