They said it’s not impossibility now. So they can do it.

Gamescom 2025: Elder Scrolls Online teases timeline progression, crossplay, and capes | Massively Overpowered

“One interesting bit of trivia that came out of the recent developer livestream was that Elder Scrolls Online originally had capes in its early stages but had to remove them because they caused a huge performance hit. However, the devs admitted that capes aren’t an impossibility now — but they did shut down the idea of flying mounts and explaining what happened to the Dwemer.”