Elder Scrolls V has been rumored to use id's Tech 5 engine but this has proven false with the news that Bethesda will be using an in-house "all-new" engine.
There's no details of what the engine is capable of, but it will surely be great. There's not much else known about the game other than the teaser video above, but it will be launching on all 3 platforms - PC, PS3 and 360.
Game designer Todd Howard has talked about the engine previously and said: "Fallout 3 technically does a lot more than Oblivion. The new stuff is an even bigger jump from that," Howard said. "I can say it is on the existing platforms, which we're really happy with. You almost feel like you have a new console when you see the game."
He also said Bethesda had been working on the technology behind the new engine for "many years".