VIII. Preview for upcoming attractions
In the interview with Power Play that was already mentioned earlier, V.L. mentioned, that they knew from the beginning, that Arena would be the first part of a series.
Already in September 1993 Bethesda stated that there will be Addons and Campaign-Mods for Arena in 1994. When Daggerfall was announced in 1994, the planned release Date was January 1995 and Arena characters could be ported to Daggerfall. Both didn't happen. Daggerfall itself names its assets "Arena2".
A photo of the Daggerfall development team: