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The development of The Elder Scrolls IV: Oblivion began in 2002, immediately after Morrowind's publication. Rumors of a sequel to The Elder Scrolls III: Morrowind began circulating in June 2004; the sequel's title was identified on September 10, 2004, the date of Oblivion's official announcement. Oblivion was developed by Bethesda Softworks, and the initial Xbox 360 and Personal computer (PC) releases were co-published by Bethesda and Take-Two Interactive subsidiary 2K Games. According to interviews with Bethesda staff, the publisher-developer relationship—one of the few independent relations in the industry—worked well, and Bethesda was not subject to excessive corporate guidance. Originally scheduled for a November 22, 2005 release, in tandem with the Xbox 360's launch, Oblivion was delayed to a March 21, 2006 release for Windows PCs and the Xbox 360.

Developers working on Oblivion focused on providing a tighter storyline, with fewer filler quests and more developed characters. The developers sought to make information in the game world more accessible to players, making the game easier to pick up and play. Oblivion features improved AI (courtesy of Bethesda's proprietary Radiant AI), improved physics (courtesy of the Havok physics engine), and impressive graphics, taking advantage of advanced lighting and shader routines like high dynamic range rendering (HDR) and specular mapping. (more...)