VoodooEconomist: If we're talking about "karma" as it's usually done in computer games - as a black or white, clearly good or clearly evil choice system that effects in clearly positive or clearly negative income, then no, TW2 doesn't have that kind of karma.

However I would argue that TW2 by dealing in grey areas of morality, no clear choices, and consequences that are logical but sometimes unforeseeable, actually represents a more mature concept of karma.

As you might know, the word "karma" on itself (without the cultural and philosophical interpretation) in Sanskrit means "to do", "deed". So when we say that what happens to you in life (or lives) is the cause of karma, what we actually say is that what happens to you is your own doing. How your life (this or next) turns out is influenced by the choices you make and the actions you take even in the wake of things you have no influence on.

Compare that to a concept of fate that predetermines all of your life. Now in gaming design choices a fate driven game would be a linear game, or one where choices don't actually matter.

Since in life choices are usually not that clear, and consequences often come unforeseen, and thing are seldom clearly good or evil except for some unusually extreme circumstances I find that the way choices work in TW2 are more life-like and immersing, and actually provide some interesting karmic situations :-)