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In The Sims: Livin' Large, if a Sim prepares a plate of cookies near a Christmas tree and a fireplace, and if all of the Sims in the household are asleep by midnight (not including pets), Santa will appear at around 3:00 AM. When Santa comes the buy mode and build mode options are not available (much like when a fire occurs or the burglar comes in). He will only appear when all the Sims in the household are asleep. Like the burglar, does not have any social interactions, and Sims will not be able to meet him. Santa will leave a "present" for each member of the household. Sims can unwrap these for Fun, but they will not actually contain anything. However, Santa will also leave a real present for the household, and those presents range from chess sets to televisions.
The Sims 2: Holiday Party Pack
With The Sims 2: Holiday Party Pack or The Sims 2: Happy Holiday Stuff, Santa Claus will appear if there is a Christmas tree on the lot and Santa cookies were baked. Children can meet him and he will eat Santa cookies. He will leave one present. If there are cookies left for him to eat he will leave a good present otherwise he will leave coal. A downside is that he'll use the toilet constantly. If a Sim interacts with Santa Claus, they can become friends, and even best friends, even though his face will not appear in the relationships panel. He bears a striking resemblance to the Therapist. Despite having grey hair, he is an adult.
Warning
Do not attempt to add Santa Claus to a household, or try to turn him into a supernatural creature, such as a vampire or a werewolf. Doing so can cause game corruption, fixed only by uninstalling and reinstalling the game.