Gothic I raised the bar for 3rd person rpg's. Why you might ask? It pulled standard crpg's away from turn-based combat where action based skill matters, voice-overs for npc's, not much loading at all, almost like an mmorpg, made you feel like you were really in the game world. It also included a duel system (almost like pvp) where you can train by dueling with one of the npc's. The game not only felt like an online game of today, but the way the story flowed, it made you feel like you were really part of it. One minute you're part of a camp, the next minute they're all against you. Gothic I was the best! If you ask me, that was the game that inspired designers to create games like Morrowind (which wasn't even half as good, imo), and today's mmorpg's.
If you haven't played it, you should definitely pick it up. I'm talking Gothic I, not II. To me, there's no sense in playing the second game until you've played the first. The graphics are good enough... they're not very outdated at all.