"We get asked that a lot," admitted Pete Hines, Vice President-PR/Marketing for Bethesda, when Pro-G UK asked him if the company had any plans for an Elder Scrolls MMORPG.
The answer is no, not really, Pete explained his opinion that they couldn't do an Elder Scrolls MMO "unless it was with some fresh idea that no one has ever tried before." This isn't an unqualified "no," though. "Certainly, there's a chance, it's something we've talked about, but it's not anywhere in our immediate future." The key is to come up with that "something new" that will work in an MMO environment, and as it stands with Oblivion on the one hand, and World of Warcraft on the other, it just won't work.