I don't think it would be a bad thing, but I wonder if part of the reason Bethesda picked up id Software was because they needed a more current engine and a group of developers more suited to build game engines that they could use to continue making sequels to their own IPs.
 
From what I've seen of Rage, I would LOVE to see Fallout 4 built on top of it (It would be nice if it was from Obsidian again, but I'm sure that will be a game that's in-house at Bethesda again.)

I would rather bet that the next ES game will be made using the Rage engine haha. 
 
If another Fallout game comes before the next ES game I might lose my mind. 
 
It's also entirely possible we'll have to wait until the launch of the next generation of consoles before we see another full on Fallout or ES game.

I just hope Bethesda hires a new animation team for their next game, their games have had some of the most awkward and unnatural animations out there.

You mean the Tech 5 engine..Rage is the engine GTA IV uses

Yea you mean id tech 5, not to confuse Rage the game with Rage the engine.
 
I'm gonna bet no unless it takes them so long to make Fallout 4 that it comes to the next generation of consoles and the consoles all have bluray drives (or better) or massive HDDs with lots of well designed installs (of which Fallout 4 would require a mandatory massive install).  The engine would work beautifully for an open world game except for the massive storage required for the unique textures for every texel of the 'overworld'.
 
The other 'problem' would be the baked shadow effects (id could change this up, but it would defeat the purpose/advantages of the engine).  You could have dynamic time of day, but the shadows on the world wouldn't change.
 
It would still be a massive upgrade over Gamebryo, but it seems impossible to properly implement.

If it means it's split up into 3 discs, no.

I feel like Todd Howard and co. will want to create their own successor to Gamebryo (thank god) for their next batch of games.
 
On a slightly tangential note, have they said anything about whether or not the games they're working on are new IP's? I remember Howard said about two months ago that they've got two unannounced projects in the works right now.

I don't want to see another ES or FO game until we have next generation consoles.

" I don't want to see another ES or FO game until we have next generation consoles. "

I don't want a new Fallout. I want a new Elder Scrolls. The id tech 5 engine would be great as long as it can be rejigged for ES' open world RPG gameplay.

I had a dream it was in the MineCraft engine...true story... it was addictive as hell in my dream.

" @OdinsThunder said:

" I don't want to see another ES or FO game until we have next generation consoles. "

That would completely suck, because the trend going on for Microsoft and Sony is that instead of creating new consoles, they're just revising and upgrading their current gen consoles. With all of the money being poured into Move and Kinect and with Microsoft making the deals to bring Espn to Xbox Live and upgrading their software, I don't see a new generation coming from them for a LONG time. If Bethesda wait until the next gen to release a new ES of Fallout game, that would make me extremely sad. It's been 6 years, I REALLY want a sequel to Oblivion. "

I had this idea right when they first started that whole id and bethesda thing. I would LOVE for that to happen because that engine is so beautiful. I also want it to be like a bethesda engine though just like fallout and elder scrolls. Somebody told me how it wasn't possible for them to use id tech 5, but in an interview they hinted at perhaps "sharing" each others technology. I hope it happens though. I really, really do.

This is the best idea I've ever heard and only good can come of it.

Well I was gonna call the next Elder Scrolls on idTech 5. I mean come on, they didn't buy it just for id to play with.

" If it means it's split up into 3 discs, no. "

" I would rather bet that the next ES game will be made using the Rage engine haha.  If another Fallout game comes before the next ES game I might lose my mind.  It's also entirely possible we'll have to wait until the launch of the next generation of consoles before we see another full on Fallout or ES game

" I REALLY want a sequel to Oblivion. "

You know, I've seen literally nothing from Rage the game, or the id tech 5 engine. How is it?

id Tech 5 looks like the logical upgrade. It is more than capable of large scale open world games.

Bethesda Game Director Todd Howard explained in a separate interview with IGN that his game would not use id Tech 5. The studio's new engine built for its upcoming title is more beneficial to creating huge, open-world games, such as Fallout 3 and The Elder Scrolls IV: Oblivion, while id Tech 5 is better for more contained environments.

"We decided to really reboot our technology after Fallout 3, so we had been making plans for that and started doing some things. The id thing came along later, so it's a mix of that plus the kinds of games we do are a bit bigger and more dynamic.

"Id Tech 5 is the best thing in the world at doing a very static environment that looks pretty and you're going to run through. But for the kinds of things I like to do, I like the world to be more dynamic."

I have to say, I think it's very backward of iD not to include dynamic lighting in their engine.  It's something that many modern engines, like Cryengine 1, have been doing for a while.

" @Kyelb22 said:

" I REALLY want a sequel to Oblivion. "

I really want a sequel to Morrowind. "

Regardless of whether they get the id Tech 5 engine or not, they really need to change their engine. It was still bearable when Fallout 3 came out, but when New Vegas came out it was acknowledged that they really need to change to a more modern gaming engine.