diff --git a/apps/openmw/engine.cpp b/apps/openmw/engine.cpp
index 2299053cd..08e24b5d6 100644
--- a/apps/openmw/engine.cpp
+++ b/apps/openmw/engine.cpp
@@ -125,7 +125,6 @@ OMW::Engine::Engine(Files::ConfigurationManager& configurationManager)
   , mFpsLevel(0)
   , mDebug (false)
   , mVerboseScripts (false)
-  , mNewGame (false)
   , mUseSound (true)
   , mCompileAll (false)
   , mScriptContext (0)
@@ -237,11 +236,6 @@ void OMW::Engine::setScriptsVerbosity(bool scriptsVerbosity)
     mVerboseScripts = scriptsVerbosity;
 }
 
-void OMW::Engine::setNewGame(bool newGame)
-{
-    mNewGame = newGame;
-}
-
 // Initialise and enter main loop.
 
 void OMW::Engine::go()
@@ -332,13 +326,13 @@ void OMW::Engine::go()
 
     // Create the world
     mEnvironment.setWorld (new MWWorld::World (*mOgre, mFileCollections, mMaster,
-        mResDir, mCfgMgr.getCachePath(), mNewGame, mEncoding, mFallbackMap));
+        mResDir, mCfgMgr.getCachePath(), mEncoding, mFallbackMap));
 
     // Create window manager - this manages all the MW-specific GUI windows
     MWScript::registerExtensions (mExtensions);
 
     mEnvironment.setWindowManager (new MWGui::WindowManager(
-        mExtensions, mFpsLevel, mNewGame, mOgre, mCfgMgr.getLogPath().string() + std::string("/"),
+        mExtensions, mFpsLevel, mOgre, mCfgMgr.getLogPath().string() + std::string("/"),
         mCfgMgr.getCachePath ().string(), mScriptConsoleMode));
 
     // Create sound system
diff --git a/apps/openmw/engine.hpp b/apps/openmw/engine.hpp
index 57402c91e..b13ec4368 100644
--- a/apps/openmw/engine.hpp
+++ b/apps/openmw/engine.hpp
@@ -68,7 +68,6 @@ namespace OMW
             int mFpsLevel;
             bool mDebug;
             bool mVerboseScripts;
-            bool mNewGame;
             bool mUseSound;
             bool mCompileAll;
             std::string mFocusName;
@@ -138,9 +137,6 @@ namespace OMW
             /// Disable or enable all sounds
             void setSoundUsage(bool soundUsage);
 
-            /// Start as a new game.
-            void setNewGame(bool newGame);
-
             /// Initialise and enter main loop.
             void go();
 
diff --git a/apps/openmw/main.cpp b/apps/openmw/main.cpp
index 0563fdbbb..6b31f3ade 100644
--- a/apps/openmw/main.cpp
+++ b/apps/openmw/main.cpp
@@ -133,9 +133,6 @@ bool parseOptions (int argc, char** argv, OMW::Engine& engine, Files::Configurat
         ("script-run", bpo::value<std::string>()->default_value(""),
             "select a file containing a list of console commands that is executed on startup")
 
-        ("new-game", bpo::value<bool>()->implicit_value(true)
-            ->default_value(false), "activate char gen/new game mechanics")
-
         ("fs-strict", bpo::value<bool>()->implicit_value(true)
             ->default_value(false), "strict file system handling (no case folding)")
 
@@ -238,7 +235,6 @@ bool parseOptions (int argc, char** argv, OMW::Engine& engine, Files::Configurat
 
     // startup-settings
     engine.setCell(variables["start"].as<std::string>());
-    engine.setNewGame(variables["new-game"].as<bool>());
 
     // other settings
     engine.setDebugMode(variables["debug"].as<bool>());
diff --git a/apps/openmw/mwbase/windowmanager.hpp b/apps/openmw/mwbase/windowmanager.hpp
index c177912d4..9df75870d 100644
--- a/apps/openmw/mwbase/windowmanager.hpp
+++ b/apps/openmw/mwbase/windowmanager.hpp
@@ -79,6 +79,8 @@ namespace MWBase
              */
             virtual void update() = 0;
 
+            virtual void newGame() = 0;
+
             virtual void pushGuiMode (MWGui::GuiMode mode) = 0;
             virtual void popGuiMode() = 0;
 
diff --git a/apps/openmw/mwbase/world.hpp b/apps/openmw/mwbase/world.hpp
index 198a20d45..3c707d196 100644
--- a/apps/openmw/mwbase/world.hpp
+++ b/apps/openmw/mwbase/world.hpp
@@ -82,6 +82,8 @@ namespace MWBase
             virtual OEngine::Render::Fader* getFader() = 0;
             ///< \ŧodo remove this function. Rendering details should not be exposed.
 
+            virtual void newGame() = 0;
+
             virtual MWWorld::CellStore *getExterior (int x, int y) = 0;
 
             virtual MWWorld::CellStore *getInterior (const std::string& name) = 0;
diff --git a/apps/openmw/mwgui/mainmenu.cpp b/apps/openmw/mwgui/mainmenu.cpp
index e98b75e9b..0f74f6e14 100644
--- a/apps/openmw/mwgui/mainmenu.cpp
+++ b/apps/openmw/mwgui/mainmenu.cpp
@@ -6,12 +6,15 @@
 #include "../mwbase/world.hpp"
 #include "../mwbase/windowmanager.hpp"
 
+#include "confirmationdialog.hpp"
+
 namespace MWGui
 {
 
-    MainMenu::MainMenu(int w, int h)
+    MainMenu::MainMenu(MWBase::WindowManager& parWindowManager, int w, int h)
         : OEngine::GUI::Layout("openmw_mainmenu.layout")
         , mButtonBox(0)
+        , mDialog(parWindowManager)
     {
         onResChange(w,h);
     }
@@ -20,7 +23,7 @@ namespace MWGui
     {
         setCoord(0,0,w,h);
 
-        int height = 64 * 3;
+        int height = 64 * 4;
 
         if (mButtonBox)
             MyGUI::Gui::getInstance ().destroyWidget(mButtonBox);
@@ -33,12 +36,11 @@ namespace MWGui
         mReturn->eventMouseButtonClick += MyGUI::newDelegate(this, &MainMenu::returnToGame);
         curH += 64;
 
-
-        /*
         mNewGame = mButtonBox->createWidget<MyGUI::Button> ("ButtonImage", MyGUI::IntCoord(0, curH, 128, 64), MyGUI::Align::Default);
+        mNewGame->eventMouseButtonClick += MyGUI::newDelegate(this, &MainMenu::newGame);
         mNewGame->setImageResource ("Menu_NewGame");
         curH += 64;
-
+/*
         mLoadGame = mButtonBox->createWidget<MyGUI::Button> ("ButtonImage", MyGUI::IntCoord(0, curH, 128, 64), MyGUI::Align::Default);
         mLoadGame->setImageResource ("Menu_LoadGame");
         curH += 64;
@@ -81,4 +83,18 @@ namespace MWGui
         Ogre::Root::getSingleton ().queueEndRendering ();
     }
 
+    void MainMenu::newGame(MyGUI::Widget* sender)
+    {
+        mDialog.open ("#{sNotifyMessage54}");
+        mDialog.eventOkClicked.clear();
+        mDialog.eventCancelClicked.clear();
+        mDialog.eventOkClicked += MyGUI::newDelegate(this, &MainMenu::newGameConfirmed);
+    }
+
+    void MainMenu::newGameConfirmed()
+    {
+        MWBase::Environment::get().getWindowManager ()->removeGuiMode (GM_MainMenu);
+        MWBase::Environment::get().getWindowManager ()->newGame ();
+        MWBase::Environment::get().getWorld ()->newGame();
+    }
 }
diff --git a/apps/openmw/mwgui/mainmenu.hpp b/apps/openmw/mwgui/mainmenu.hpp
index fd583d187..ab48f29d9 100644
--- a/apps/openmw/mwgui/mainmenu.hpp
+++ b/apps/openmw/mwgui/mainmenu.hpp
@@ -1,12 +1,14 @@
 #include <openengine/gui/layout.hpp>
 
+#include "confirmationdialog.hpp"
+
 namespace MWGui
 {
 
     class MainMenu : public OEngine::GUI::Layout
     {
     public:
-        MainMenu(int w, int h);
+        MainMenu(MWBase::WindowManager& parWindowManager, int w, int h);
 
         void onResChange(int w, int h);
 
@@ -24,6 +26,10 @@ namespace MWGui
         void returnToGame(MyGUI::Widget* sender);
         void showOptions(MyGUI::Widget* sender);
         void exitGame(MyGUI::Widget* sender);
+        void newGame(MyGUI::Widget* sender);
+        void newGameConfirmed();
+
+        ConfirmationDialog mDialog;
     };
 
 }
diff --git a/apps/openmw/mwgui/windowmanagerimp.cpp b/apps/openmw/mwgui/windowmanagerimp.cpp
index 373546aa8..1f5966f72 100644
--- a/apps/openmw/mwgui/windowmanagerimp.cpp
+++ b/apps/openmw/mwgui/windowmanagerimp.cpp
@@ -54,7 +54,7 @@
 using namespace MWGui;
 
 WindowManager::WindowManager(
-    const Compiler::Extensions& extensions, int fpsLevel, bool newGame, OEngine::Render::OgreRenderer *mOgre,
+    const Compiler::Extensions& extensions, int fpsLevel, OEngine::Render::OgreRenderer *mOgre,
         const std::string& logpath, const std::string& cacheDir, bool consoleOnlyScripts)
   : mGuiManager(NULL)
   , mHud(NULL)
@@ -95,8 +95,8 @@ WindowManager::WindowManager(
   , mGui(NULL)
   , mGarbageDialogs()
   , mShown(GW_ALL)
-  , mAllowed(newGame ? GW_None : GW_ALL)
-  , mRestAllowed(newGame ? false : true)
+  , mAllowed(GW_ALL)
+  , mRestAllowed(true)
   , mShowFPSLevel(fpsLevel)
   , mFPS(0.0f)
   , mTriangleCount(0)
@@ -139,7 +139,7 @@ WindowManager::WindowManager(
     mDragAndDrop->mDraggedWidget = 0;
     mDragAndDrop->mDragAndDropWidget = dragAndDropWidget;
 
-    mMenu = new MainMenu(w,h);
+    mMenu = new MainMenu(*this, w,h);
     mMap = new MapWindow(*this, cacheDir);
     mStatsWindow = new StatsWindow(*this);
     mConsole = new Console(w,h, consoleOnlyScripts);
@@ -1041,3 +1041,9 @@ void WindowManager::startTraining(MWWorld::Ptr actor)
 {
     mTrainingWindow->startTraining(actor);
 }
+
+void WindowManager::newGame ()
+{
+    mAllowed = GW_None;
+    mRestAllowed = false;
+}
diff --git a/apps/openmw/mwgui/windowmanagerimp.hpp b/apps/openmw/mwgui/windowmanagerimp.hpp
index 2e684b5da..db5c22348 100644
--- a/apps/openmw/mwgui/windowmanagerimp.hpp
+++ b/apps/openmw/mwgui/windowmanagerimp.hpp
@@ -74,7 +74,7 @@ namespace MWGui
     typedef std::pair<std::string, int> Faction;
     typedef std::vector<Faction> FactionList;
 
-    WindowManager(const Compiler::Extensions& extensions, int fpsLevel, bool newGame,
+    WindowManager(const Compiler::Extensions& extensions, int fpsLevel,
                   OEngine::Render::OgreRenderer *mOgre, const std::string& logpath,
                   const std::string& cacheDir, bool consoleOnlyScripts);
     virtual ~WindowManager();
@@ -86,6 +86,8 @@ namespace MWGui
      */
     virtual void update();
 
+    virtual void newGame();
+
     virtual void pushGuiMode(GuiMode mode);
     virtual void popGuiMode();
     virtual void removeGuiMode(GuiMode mode); ///< can be anywhere in the stack
diff --git a/apps/openmw/mwworld/worldimp.cpp b/apps/openmw/mwworld/worldimp.cpp
index 8eb121d37..afcdb8d39 100644
--- a/apps/openmw/mwworld/worldimp.cpp
+++ b/apps/openmw/mwworld/worldimp.cpp
@@ -167,10 +167,10 @@ namespace MWWorld
 
     World::World (OEngine::Render::OgreRenderer& renderer,
         const Files::Collections& fileCollections,
-        const std::string& master, const boost::filesystem::path& resDir, const boost::filesystem::path& cacheDir, bool newGame,
+        const std::string& master, const boost::filesystem::path& resDir, const boost::filesystem::path& cacheDir,
         const std::string& encoding, std::map<std::string,std::string> fallbackMap)
     : mPlayer (0), mLocalScripts (mStore), mGlobalVariables (0),
-      mSky (true), mCells (mStore, mEsm),
+      mSky (true), mCells (mStore, mEsm), mNewGameStarted(false),
       mNumFacing(0)
     {
         mPhysics = new PhysicsSystem(renderer);
@@ -197,12 +197,6 @@ namespace MWWorld
         // global variables
         mGlobalVariables = new Globals (mStore);
 
-        if (newGame)
-        {
-            // set new game mark
-            mGlobalVariables->setInt ("chargenstate", 1);
-        }
-
         mGlobalVariables->setInt ("pcrace", 3);
 
         mWorldScene = new Scene(*mRendering, mPhysics);
@@ -1015,6 +1009,12 @@ namespace MWWorld
                 }
             }
         }
+
+        if (mNewGameStarted)
+        {
+            playVideo ("mw_intro.bik");
+            mNewGameStarted = false;
+        }
     }
 
     bool World::isCellExterior() const
@@ -1296,4 +1296,11 @@ namespace MWWorld
     {
         mRendering->stopVideo();
     }
+
+    void World::newGame ()
+    {
+        // set new game mark
+        mGlobalVariables->setInt ("chargenstate", 1);
+        mNewGameStarted = true; // in order to play the intro video at the end of the next frame
+    }
 }
diff --git a/apps/openmw/mwworld/worldimp.hpp b/apps/openmw/mwworld/worldimp.hpp
index 1c1352913..8f89ecff3 100644
--- a/apps/openmw/mwworld/worldimp.hpp
+++ b/apps/openmw/mwworld/worldimp.hpp
@@ -60,6 +60,7 @@ namespace MWWorld
             MWWorld::Globals *mGlobalVariables;
             MWWorld::PhysicsSystem *mPhysics;
             bool mSky;
+            bool mNewGameStarted;
 
             Cells mCells;
 
@@ -94,7 +95,7 @@ namespace MWWorld
 
             World (OEngine::Render::OgreRenderer& renderer,
                 const Files::Collections& fileCollections,
-                const std::string& master, const boost::filesystem::path& resDir, const boost::filesystem::path& cacheDir, bool newGame,
+                const std::string& master, const boost::filesystem::path& resDir, const boost::filesystem::path& cacheDir,
                 const std::string& encoding, std::map<std::string,std::string> fallbackMap);
 
             virtual ~World();
@@ -102,6 +103,8 @@ namespace MWWorld
             virtual OEngine::Render::Fader* getFader();
             ///< \ŧodo remove this function. Rendering details should not be exposed.
 
+            virtual void newGame();
+
             virtual CellStore *getExterior (int x, int y);
 
             virtual CellStore *getInterior (const std::string& name);