Prologue: Victory is written by the Victors
Just to point out an opinion of mine, every house/faction is noble and justified.
Now to point out my other opinion, all of them are completely misguided, if not evil.
What I mean to say is, think about how history has been written. To quote a cliche, "History is written by the victor." If the Confederacy were to have won during the American Civil war, slavery would have probably been considered "morally just", as it was 'proven' so through fierce battle and eventual victory. The same can be true for this world.
It all began the fated day the two Princesses, sisters bound in an eternal rule... disappeared. No, not like an assassination or they ran away. Utter dissipation. Not even a trace to have been left behind. One would think their oh so loyal subjects, ponies who sought their approval and made constant admiration and adoration, would shed even a tear for their lost monarchs. No... no, they rose in anger.
Without Princess Celestia and Luna, there were none to carry out the sacred duties bestowed upon them, the rising of the Moon and Sun. Yet... they continue the cycle? How can this be? The Sister.. they always did this for us! If the celestial bodies can act of their own volition, then... it was all a.. lie? That's not possible, it- it conflicts with everything we know of the Royal Bloo- ... no, not royal blood. They were all a sham... it makes so much sense. I can.. can see it now! A Lie! Everypony, it was all a-
... and thus it had begun.
Without any sort of figure to throw all their hope and dreams into, something to believe in, truly, the land fell into Anarchy. No longer was there a reason to remain a just and kind race. Lies, deceit, everything that was considered "immoral" or "inequine" was put into question. If the Princesses lied about their power, then what else could they have lied about?
Through all of this, surely the Elements of Harmony could shed some light on this sorrowful path to destruction. Surely!
.. Alas, even they have begun to doubt all they knew. The Elements attempt to hold onto the failing kinship they share, but with such a heavy weight added to their shoulders, how can they know for certain that friendship ever existed? Then begins the drastic differences between the coming to light. Fluttershy does what she can to help the frightened ponies troubled by this harsh turn of events. Applejack struggles with herself, unsure of anything after such a tremendous lie surfaces. Rarity seeks to spread her generosity to the land, help the economical collapse slowly taking route. Rainbow Dash does what she can to help her friends, and Pinkie continues what she does best, helping the mass find a reason to smile again.
Twilight.. she does the only thing she knows how. She questions. Ponders. Wonders. How could this happen? Why did
this happen? Why now? What will this mean for Equestria? For the world even? The inquiries built and built until they grew within her mind, taking over her thoughts and actions. Finally, what seemed to be the answer became clear: Celestia and Luna, in all their glory, were still looking over their subjects from wherever they have disappeared to.
Many follow the same line of reasoning, siding with her as well. Unfortunately, not all are as open to change. Some see this as the death of the sisters, and so they must move on with Equestria. This holds most true for the Pegasi, those loyal and stalwart souls who pledge themselves to the land's well-being. Then there are some who would rather fortify themselves, forming a barrier of protection from the now-hostile world they find themselves in, no matter the cost to others. Fluttershy eventually takes the initiative to form Refugee Camps, a means of helping the most deprived victims of this new era. Twilight begins her quest for an answer, and decides on a course of action.
Using her immense knowledge, Twilight begins a study on the properties of Alicorns, and is determined to discover the secret of their genetic makeup. She performs many tests, one such was on herself, and managed to amass great power, though not the might of a true Alicorn. The second test was attempted on Rainbow Dash, playing on her Loyalty to achieve this. The results were not as she expected, and Rainbow Dash would henceforth bear the hideous scar across half her face, forever marking her as crippled.
Twilight as grieved, but not deterred. In her final attempt, she assuaged Pinkie Pie, claiming that it was her duty to the denizens of Equestria to participate, else she would be responsible for the aftermath. The procedure went well, until Twilight suddenly lost control, and the Library went up in a flash of light. Twilight awoke in the wreckage, and discovered the breathless body of her friend, never to throw another party again.
Twilight never again retained her sanity, it is said. She became fanatical towards detail and efficiency, searching, desperate for answers to endless questions. Her lust for Knowledge spurred Applejack's heated feelings, and she spoke out against Twilight publicly, claiming her as bad as the Princesses themselves. This sparked outrage, not only from Twilight, but from the many ponies still holding hope and solace in their hearts for the missing Sisters.
Together with the help of her supporters, Twilight declared Applejack and her family traitors to the crown, and forced them from Canterlot forever. Applejack was infuriated, and eventually grew to despise each of her friends, all of which shared her dissent. Rarity began setting up a Trade Take-Over of Manehatten, eventually creating the Fortress-City it is today. Fluttershy retreated within the Everfree, a certain slaughter of a Refugee camp having stolen the last of her kindness she had to offer. Rainbow Dash took to the skies, along with the other Pegasi, staying in their many Cloud cities in unreachable, mobile reaches.
Twilight continued to rise to power, fueled by her former connection with the Princesses. Unicorns of Equestria rallied to her, believing her preaching and following it blindly, the only thing left to believe in. Twilight eventually ascended to the position of Archmagister, taking the roll of the head of the Unicorn populace, which had thus separated into two groups, each devoted to one of the form Monarchs and their celestial body of choice.
Each force took on a name, and a face. These were the new Global Powers, the Houses of Equestria. House Moon and Star, seeking to spread the word of the Sisters and seek higher ascendance for equines. House Everfree, seeking to rid the world of its industrial taint and return it to the lush, natural order it prior partook of. House Stormwing, seeking to preserve the traditions of the original government of Equestria, not conform to new policies instilled by Twilight and her ilk. House Earthborn, led by the Apple family, seek to rid the land of the corrupt bureaucracy instilled by the Unicorn race, along with the pony folk responsible for it originally. House Whitegold seeks to collect massive wealth, and serve as a conduit of information to be sold to the highest bidder. All with their own purposes, all corrupt, all noble.
Amidst these events, another faction rares its erratic head. After the death of Pinkie, she was entombed in the Lunar Mausoleum in Canterlot. A group of master thieves managed to break in and steal her casket, whisking it to parts unknown. Soon after, a group of strangely dressed performers and merry-goers began to spread throughout Equestria, taking route deep within every faction's territory. These members stayed within the shadows to start, but eventually gained enough attention to merit global recognition, and thus- The Cult of Laughter was born.
Members of the Cult can be of any race, species, and origin. All are welcome within their happy little family. Many within this group speak of a singular deity they all worship, something only referred to as "The Laughing Mare". Though little is officially known about the Cult, there are rumors among the Houses that the group actively participates in Rituals and Summoning, even the commonly forbidden act of Necromancy. No informant has ever been able to get deep enough to discover the truth, remaining sane enough to return with it either.
The factions are set. The tides of war strike near. Everypony- no, everyone, must choose a side, lest they be caught betwixt the mass of skirmishes and conflict of the armies seeking to claim Equestria their own. The biggest question that remains is simple... which side do you choose? Who will decide the Final Truth?
That is not for me to decide. Make of this what you will, it matters little to me, For I... I am but a messenger.