I've seen it in a few games, and it depends on how it is done.
In Star Control 2, you become aware of it, because the star map constantly updates whenever events happen. You can see the other races' zone of influence move, shrink, or grow depending on events in game. As a result, it becomes a part of the narrative and therefore adds tension and value to the player.
In Wizardry 7? 8?... you were wondering around looking for macguffins for reasons I can't remember, but other parties where wandering around looking for the same macguffins. Whether they got them or not was entirely up to chance and time... the problem being that the game would not inform you of who took it, or why. So you'd get to the end of a quest... and bam. Nothing. You'd then have to cast spells, hoping to find the macguffin, only to find out that the hippoman and some cat dude are fighting over it.
Ugh.
In Star Control 2, you become aware of it, because the star map constantly updates whenever events happen. You can see the other races' zone of influence move, shrink, or grow depending on events in game. As a result, it becomes a part of the narrative and therefore adds tension and value to the player.
In Wizardry 7? 8?... you were wondering around looking for macguffins for reasons I can't remember, but other parties where wandering around looking for the same macguffins. Whether they got them or not was entirely up to chance and time... the problem being that the game would not inform you of who took it, or why. So you'd get to the end of a quest... and bam. Nothing. You'd then have to cast spells, hoping to find the macguffin, only to find out that the hippoman and some cat dude are fighting over it.
Ugh.