This quote from an interview from August 2010 makes me think otherwise:
'Inspired' by the technology we have? Fallout 3 tech is the starting point? Sounds more like an engine upgrade to me than a really new engine. Probably a lot of the code used for the Oblivion/FO3 engine was already theirs. They only needed to exchange the basic framework with their own code and now they can call it a new engine. Personally I expect a heavily pimped FO3 engine, but nothing that makes your jaw drop to the floor.
EVERY ONE OF YOU GUYS IS THINKING TO HARD INTO THIS, I'm a computer science major and I've taken animation courses as well. I also have experience with the UDK too. A new engine is a new engine. Since they gamebyro engine company has collapsed they will not have that tech available to them. It'll be a brand new engine. Starting point means were the technology previously was at. If it's a giant step up, it's a giant step up.