The Chao A-Life was vastly improved for Sonic Adventure 2. Chao have more individuality and more depth to their personalities, and they can now do a lot more both alone and together.
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Common interactions|Friendship behaviours|Bully behaviours|Chao and you
You will most likely see these just by playing, and you don't have to do anything special to get them.
Television/radio: If one Chao turns the television or radio on, others will usually come and sit down.
Ball: If one Chao starts chasing the ball, others will usually join in.
Musical instruments: If a Chao starts to play a musical instrument from Kindergarten, others will play instruments of their own, or sit down to listen. If the Chao aren't friends, the listener might hold his head and cry, in which case the Chao playing the instrument will start to cry too.
Kindergarten activities: If a Chao is dancing, exercising or doing some other Kindergarten activity, other Chao may join in. The exception is drawing.
Singing: If a Chao starts singing, others will sit down to listen. At the end of the song, they will clap.
Singing badly: If a Chao starts singing badly, others will sit down, but they'll hold their heads and cry.
Food: If Chao are starving, they may team up together and try to shake food out of the trees.
These are much rarer to see because you have to raise two Chao to be friends.
To make Chao be friends, you must hatch them both in the same garden by the same method, and they ought to have the same personality. Keep them together as babies. Feed them both at the same time. Give them items at the same time, and evolve them both to be the same alignment. Teach them both a musical instrument, and when one Chao starts to play, put the other one nearby so he'll join in. Do the same when one Chao starts watching television. Keep on with this as much and as often as you can, and with luck the two Chao will become friends.
If your Chao are friends, they will do certain unique behaviours.
Rocking horse: In the Hero Garden, Chao may push each other on the rocking horse.
Holding hands: Two Chao who are very good friends may skip about holding hands. I have never seen this personally.
Dancing: Two Chao who are very good friends may dance with each other. I have never seen this personally.
Following: Two Chao who are friends may walk around together.
There's potential for some really awesome interactions. If one of a friendship pair is bullied, the other will rush over to defend his friend against the bully! Also, I have heard that when one of a friendship pair dies, the other will start to cry and be inconsolable. In a little while, he'll die too...
These are much rarer to see because you have to raise a Chao specifically to be a bully.
If you beat and starve a Chao, while constantly petting another Chao in his sight, that Chao may become a bully. Only Energetic and Hot Temper Chao do this.
Fighting: If the Chao is a bully, he will attack other Chao when you spoil them.
Stealing food: If you feed a Chao where the hungry bully can see, he may come over and take the food himself when your back is turned. The bullied Chao will cry. I have seen this on Dreamcast.
Bully Chao are not happy Chao. If you want to keep your bully Chao, you'll have to start petting him and taking care of him when he gets to about four, otherwise he'll die on you and not return.
Coming when you whistle: Chao who like your character will come running to you.
Squirming happily when picked up: The Chao likes your character.
Skipping up to you: Chao wants to be petted. If you don't pet the Chao he will start jumping up and down to make you notice him. This only happens if the Chao has very high affection for your character.
"Hiii!": The Chao is Hero-aligned and likes your character. Note: adult Dark Chao will also do this if they've been cared for by a Hero character.
Thumbs-up pose: The Chao is Dark-aligned and likes your character. Note: adult Hero Chao will also do this if they've been cared for by a Dark character.
"Beah!": The Chao dislikes your character.
Chasing you while you hold a fruit: If a Chao is very hungry, he will come running up to you with his arms held out and beg for the fruit. If you don't give it to him his affection for your character will drop sharply.
Struggling when picked up: The Chao dislikes your character. If the Chao hates your character, and you still keep hold of him, he will eventually free himself with his struggles.
Stamping and raging: Chao who really dislike your character, or are offended by something you just did, will throw tantrums when you're near.
Don't take Darkie-chao's food awayAttacking your character: Been beating your Chao, have you? Chao will come up and start kicking at you when your back is turned if their affection for you is -100%.
Cowering and shivering: Been beating your Chao, have you? Chao is terrified of you!
Running away screaming: Been beating your Chao, have you? Chao will run away from you if affection is -100% and you hit them regularly.
Sitting and wobbling dizzily: Been beating your Chao, have you? Chao will do this after they have been thrown against a wall.
Standing up and crying: Chao do this if you hurt them or if you took their food away while they were eating it.
Flailing on the ground crying: Chao is hungry. Feed him.