One of the more interesting aspects of Heavenly Sword's dialog system comes from its "Chatterbox" system. As she explains: "the Chatterbox system that the Ninja Theory guys have talked about way back when they did the cover of Heavenly Sword in Edge. You've got the soldiers talking away to each other during fights, mocking Nariko, mocking each other, reacting to the player's moves etc. The enemy will have a noticeable change depending on how many of them there are in the fight. If there are lots then they'll be more upbeat and bolshy. If there's just a few they'll be much more panicked or cowardly."
Read Joystiq's full interview to find out more about Heavenly Sword and game writing.