The oracle decides that at the beginning of the sixth matrix reload that she has had enough of the cycle and wants to created peace. She guides all the key player to help accomplish her goal. Before Neo was even freed she started positioning Morphous and Trinity. Here is what does not make sense to me. How does the oracle know before Neo is freed that Smith will become too powerful and threaten the Matrix? This is really the only bargaining chip Neo has when he petitions to the machines for peace, and therefore the only way the oracle can achieve her goal of a peaceful coexistence that is consistent with the game she played. If Smith does not become powerful then Neo chooses the door to Trinity because of the oracle’s positioning and the existence for humans will end..… that’s that. But since Smith did become powerful and now can only be beaten by Neo, there is a bargaining chip to be played. There is no evidence that the oracle knew prior to Neo being freed that Smith was going to get out of control. Did the oracle fall into dumb luck? I find this hard to believe considering the careful plot structure of the movies. In addition the oracle can not see the future although that’s what everyone believes. She has enough information to position people to make it seam like she knows the future.

Please help me understand what I am missing.

the "path of neo"
thats the answer.
lol.the game is structured and has its own path,which you follow through the levels.more hidden items you find the more of the path to truth are given to you.
the end of the game will be the same which ever path you choose,but getting there the task becomes easier through the rewards,finding hidden items.
the game can only work on its structured engine,the oracle as you say is dumb and dont make sense.
i agree,but the game is not part of the film idology its just a kung foo adventure the narration is just added to link it to the matrix film series.
i just whack all the cheats on and smash my way through the game..im quite disapointed with this game i dont enjoy it.