Lancelot
Adventurer
In my campaign, a successful Intimidate on a bloodied monster causes it to believe that to fight on is hopeless and certain to end in its death. How the monster reacts to that belief depends on the situation and the monster; it does not always equal surrendering and being out of the fight. Frequently it will. But not always. The monster's intelligence, culture and motivations; the PC's actions, demeanor and reputation; the preceived likelihood of survival if the monster surrenders, pretends to surrender, flees, bluffs or feigns death may all play into the result. A successful check will always give the party some benefit, but it may not be a surrender.
In my DM'ing experience, I'm something like this as well. However, I apply the ruling that some monsters simply can't be intimidated.
Although the rules don't say as much, you can't intimidate an ochre jelly. Or a zombie. Or a starspawn of hadar. Some creatures are so mindless or utterly alien they simply don't understand the concept of intimidation.
I'd also DM fiat to prevent intimidation in an encounter which is specifically designed for story reasons. For example, the final uber-battle against the Big Bad.
I'd allow Intimidation to work in most other encounters as long as it wasn't being abused. I'd even encourage it in some circumstances, because I agree with the original poster that it's a great way to end combats before they become boring, and live enemies are more interesting than dead enemies.
I also think that if a player came to me with a munched out Intimidate build and expected that it would work for *every* encounter that he wanted (as long as he rolled a number on a d20), I would hope that he talked to me first. I could give him some references for other gaming groups to try out.

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