Anyone knows what tools and software was used to design and create the animated portraits of the different races? 

I recommend to post your thread in modding or perhaps game design area of forum.

All I know is that they incorporated 3D models.

Our 3D animators work from a static 3D model using 3DS Max & Motion Builder.

Why is Dominik giving me the sexy face? That's not what I pay him for.

That doesn't mean it's not what the rest of us pay him for.

The reason i asked was to understand how hard it would be to make a few animated portraits for when players wanna make a custom race.

Aitarus wrote:

That doesn't mean it's not what the rest of us pay him for.

Ones that can afford to pay... the rest of us get Scales Galena. 

I would like to suggest the option for changing the 3D portrait for a custom jpeg or png image when modding. This way a modder can make his own custom heroes and faction leaders without the need for 3D modeling.