Oblivion:Loot Bag

Loot bags are items that spawn in a room when too many items have been dropped, resulting in the items in the room being transferred to the bag to reduce lag.

Uses

It was theorized that loot bags could be exploited to transfer quest items into an accessible container for the player to acquire. This would work on several items such as the Armor of Tiber Septim, or other lose items. Theoretically this would be faster than navigating through a dungeon to find these items, and in some cases could potentially cause sequence breaks due to acquiring items that are inaccessible otherwise.

Mechanics

Although the console versions are fairly easily able to spawn loot bags, the PC version appears to be near impossible. Analysis of the game's code can be summarized as the follow pseudo-code:

if (availableMemory < 4kb) {
    generateLootBag();
}

What this snippet is showing evidence of is that the loot bags on the PC version will only spawn if there is less than 4kb of physical memory available. This would be very difficult to achieve on modern hardware, effectively making it impossible to spawn loot bags on PC.