Clovenhoof said:
That's a good point; actually "shock and awe" should be a valid option to win an encounter. That is, if you demoralize your opponent you won't have to fight everyone to the death. But don't even _try_ to write up Morale rules. Morale in battle does not follow logical rules. So as a GM just try to be sensible about it.
Personally I am just that crazy as to try to write some fast and loose morale rules for NPCs.

Those would work for the whole bunch of enemies, obviously but so far I don't have to worry about it...
Clovenhoof said:
So all I'm trying to say is, if your heroes in Conan fight a bunch of mooks and these see they are getting beaten to pulp, let them turn and run. ^^
And let your PCs get the AoO

But seriously that's part of what I was trying to say, too. Besides it's not like stealing XP from your players because Conan doesn't give XP for kills, IIRC. It's all up to GM to decide how much XP he gives.
Clovenhoof said:
On the other hand, while the opposite situation is also valid, i.e. the PCs being outmatched so they should flee, keep in mind that your players can't read your mind. Players always try to understand what the GM has in mind, that may be metagaming but it's a fact. So if your players think you want them to flee, they'll flee; if they think you want them to stand, they'll stand.
When in doubt, don't be afraid to tell them straight-on and OOC what you expect them to do, especially in the early phases of a game, until you all know how each other ticks.
Good point. Actually my players fall to the group that usually stands to the last man and hope to win the combat no matter the odds. Obviously it is kind of hard to persuade them to play the other way.
I can give you an example. We were playing a Finnish fantasy game with very much similar feel to the setting as in Conan.
The party was confident and competent when they encountered a group of barbarians (pretty convenient for this post). Only one of the barbarians spoke Jaconian (the language that is sort of common language in other parts of the setting). The barbarians were out there to get some easy loot and since they have a pretty fierce reputation not to mention that they outnumbered the party they tried to get some of the party's possessions. Since the party was pretty well armed and armored the barbarians tried to intimidate the party to give up some of the horses etc. Obviously PCs declined and the fight broke out.
Suddenly I found out that I had made the encounter a bit too heavy with at least one PC down and in need of medical attention, fast. So I decided that the spokes person would be the leader (although he had the same basic stats as the rest of them) and because barbarians had also suffered some casualties if the leader fell then others would flee. Fortunately this indeed happened.
But what was really interesting was the fact that player of the PC who had felled the barbarian leader raised the question "Why we didn't simply hand out one of the horses and get it done with? Or tried to flee?". For me, these were very good questions and I hope they still remember them when a similar situation occurs.
BTW, sure they got to keep the horse but they had to buy a potion to prevent one of the PCs loosing his leg that costs at least 10 times how much the horse costs
Being subtle but still clear is not easy but something that at least I try to learn to be.