First, there's humans, obviously.
Then, there's elves.
Then, high elves: size of humans, but elf strength/weaknesses.
Then, night elves: dark-skinned elves, with bonuses during the night at the cost of day.
Then, blood elves: elves which specialize in trickery and deceit, focusing on speed at the cost of magic.
Then, wood elves: elves which specialize in magic, at the cost of strength and speed.
Then there's beastmen: highly-customized hybrids between humans and beasts.
Deer, Goat, Bull, Horse, Cat, Lion, Tiger, Wolf, Dog, Fox, Raccoon, Rat, Rabbit, Hamster, Raven, Owl, Vulture, Hawk, Bird, and Lizard are all types I've classified; there may be more.
Then, werebeasts: they start as one race, and transform into a hybrid between that race and one of the beastmen races above. Usually the starting race is human, but not necessarily.
I also thought it'd be possible to have:
Gnolls, trolls, orcs, ogres, ettin, goblins, hobgoblins, kobolds, vampires, skeletons, liches, zombies, mummies, ghosts, ghouls, banshees, wraiths, phantoms, spirits, wisps, wights, djinn, dwarves, gnomes, halflings, demons, daemons, devils, imps, succubae, incubae, angels, cherubim, seraphim, celestials, fairies, pixies, robots, dragons, giants, insectoids, swarms, merfolk, sirens, and then maybe also lamia/naga/gorgons (may or may not be separate).
Races would be mostly just for appearances. Mostly. There would be some stats associated with some of them, and in-game equipment limitations on some of them, though largely based off of size. (A giant's boot doesn't fit equally as well on a halfling, for instance!)
Of course, what I mainly worked on was two of the characters that would accompany the protagonist. An elf percussionist (maybe high elf, not sure yet) would block with barriers made from shockwaves and explosions, effectively as a team shield, and attack with those same things used on the offensive. His preferred methods would be drums (via drumsticks) or his bare hands (snapping, clapping).
I also designed a beastman(bird) conductor (as in, orchestra): he uses razor floss to deflect, and then controls the situation through manipulation. He prefers strings, but he can use other instruments if needed.