The gamebyro engine for it self might not be bad, but I feel the way how Bethesda is using it makes it somewhat ... outdated. I have played Morrowind, Oblivion, Fallout 3 and Skyrim and thinking about it, over the years only very little has really changed between those games.
Sure, the visuals got better, some of the textures and they got finally the "faces" to look decent in Skyrim, not perfect, but better then what they had in Oblivion and Fallout 3. But a lot of things still havn't been touched. Like how the game still cant render more then 5 people on your screan simultaniously before the engine decides that its time to die
I assume you're talking hyperbole and not literally, even on the console version you will frequently see more than 5 NPCs on screen at a time without the engine 'dying'. It's also important not to confuse console limitations with what the engine can actually do. Also in this same chain of sentences you said "over the years very little has changed" then went on to list improvements in visuals and character models. That's usually what people are talking about when they say "engine". How the game looks and performs.
Morrowind:
Oblivion:
Skyrim:
as far as the gameplay goes they also made no improvements. A new engine should give you the oportunity to work on new gameplay as well, something that you could not do before because you had not enough hardware to do it.
Just comparing Oblivion to Skyrim should be enough to meet those requirements.
But the AI in Skyrim is basically still not more then what you had in Morrowind.
The AI doesn't have anything to do with Gamebryo and was significantly improved (http://elderscrolls.wikia.com/wiki/Radiant_A.I.). I think you're exaggerating to make a point but having played Morrowind, Oblivion and Skyrim (all within a very recent span of time) I can tell you the differences are large. The extent of the AI in Morrowind was that they walked around. That was literally it. They didn't interact with each other... they didn't interact with you (unless you initiated a dialogue). They couldn't even leave buildings on their own unless it was an escort quest.
And lets not even start about things that make RPGs interesting, what about social interactions? NPC behaviour and AI. This also has not improved.
http://elderscrolls.wikia.com/wiki/Radiant_A.I but if you're talking about dialogue and quests that has... you guessed it, nothing to do with the engine. Morrowind's NPCs did basically nothing, they were human-shaped blobs of repeating text. Oblivion's NPCs moved and interacted with each other, many of which had their own schedules, traveling throughout the world on certain days and at certain times and also by interacting with objects in the environment. Skyrim improved upon this.
Skyrim is really the same kind of experience you had already with Fallout 3 and Oblivion, and I mean the same experience, running around in a huge MMO like environment doing meaningless quests. The word hiking simulator somehow comes in to my mind.
It's almost like it was a sequel to a series of similar games coincidentally made by the same team of people.
and have still a lot of trouble to get it right ... even after a decade of working with the gamebryo engine Skyrim had so many bugs its not funny anymore.
Most bugs likely have little to do with the engine. If you've ever worked with the GECK or Creation kit, you can make all kinds of "bugs" just by doing it wrong.
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