Oblivion wasn't developed from the start with the Xbox 360 in mind. It was developed for the PC, although they tried for a 360 launch title I think.
Back track to 2004, when Doom 3 was released. That game was the first to display next-gen graphics, not too far off from what we have now. ID Tech 4 is STILL powering games, such as Wolfenstein and Brink (apparently), but I see that game as the starting point for this so called next-gen rush. Even though, Doom 3 was also released for the original Xbox.
The next engine to come out was Valve's Source engine, which featured damn good physics. Both ID Tech 4 and Source were engines that were in development years before 2004, however.
Unreal Engine 4 is going to be for the 8th generation consoles. ID tech 6 already has speculation about, that it may feature some ray-tracing elements. Both engines are very far off - an ID tech 5 game has yet to be released.
TES V: will be this-gen. Not next-gen. This-gen. As I said about Doom 3 being the first "next-gen" game, it was still released for a 6th-gen console. There is no reason to believe that a game cannot be released that incorporates elements that will be a part of the 8th generation, yet still run on 7th-gen hardware. This is already the case. Crysis, Crysis 2, S.T.A.L.K.E.R and a handful of other games using DirectX 10 and DirectX 11 technology are games that in graphical capabilities will be in between 7th and 8th generation games. However, they are also PC games, and DirectX is a PC technology. Crysis 2 is also going to be released for the consoles. So, in the end, even though on PC they will have superior graphics to their console counter parts - Doom 4 will be the same way most likely - they are still 7th-gen games.
7th-gen is going to be around for quite a while. 6th-gen titles have still been released even recently. 7th-gen was dominated not by graphical prowess but new methods of interacting with the game itself - the Wii, despite its relative "retardation" compared to PS3 and 360, is a console that sold a lot better and now the other consoles are trying to capitalize on the success of the Wii with Playstation Move and Kinect. Give these new products about 3 years time, then lets start talking about 8th gen... until then, the only 8th gen anyone will see any time soon is not a console you plug into a TV, nor is it going to be TESV... I think the first truly 8th-gen device will be the Nintendo 3DS, because this is technology using 3D displays without the need for glasses.
8th generation technology will make wide use of 3D technology, along with better motion capture controls. We may start to see displays that can display 3D without the need for glasses. This might even be the generation that true virtual reality starts to appear in a more advanced form, although I'm betting that's for the 9th generation - and probably in 20 years we'll be able to step inside a game with all 5 senses simulated.
I know this post is more speculation on future of video games than anything else, but the point is, TESV is not going to be released in the 8th generation. It will still be a 7th generation game, because there is not going to be an instant leap to 8th gen. There will be a gradual development to it. TESV will be part of that, but it will still be able to run on 7th-gen hardware because 8th gen is too far off. 3 years is a very liberal estimate... I think 8th gen might come about around 2015. Also, the next Xbox may likely have capabilities to run DirectX 12, or even DirectX 13... both of which aren't even close to release.
Interesting post, but I disagree.
Doom 3, while it was impressive, was not a next generation game.
When talking about generations, I am referring to consoles, not PC's.
If you look at DOOM 3 on xbox and compare it to an early xbox 360 game like Halo 3 or Oblivion the latter are MILES ahead of DOOM 3.
Now if you look at DOOM 3 on a PC when it was released and now you may see an increase in quality I don't know I'm not much of a PC gamer.
The difference between releasing ESV on Xbox 360 vs Xbox 720 is going to make a HUGE difference. Assuming the new xbox is released in 3 years
and just for a moment lets assume xbox ESV is released on that new system. That would be the difference of releasing a game on BRAND new hardware or hardware that is 8 YEARS OLD.
This will make a huge difference and I disagree with the blurring of generations, as far as consoles are concerned.
Bethesda is going to keep the consoles in mind because Console sales are a huge portion of their sales.