id Software used to be on the forefront of graphics and were very successful in licensing their graphics engine to many game developers in the past. id Tech 3 (Quake 3) was the standard engine running most first person shooters in the 90's. But in the current gen id lost nearly all of its marketshare to the Unreal Engine 3 who quickly became the standard game engine to be used by game developers (Bioshock, Medal of Honor, Mass Effect, Batman Arkham Asylum, Splinter Cell etc). Meanwhile id Tech 4 (first used in Doom 3 in 2004) was used by almost nobody.
Now since Rage was first shown to the public in the form of a tech demo and demonstration of id's new engine, id Tech 5 in 2007, there's been hope that id and Carmack would reclaim their position as the kings of game engine technology.
However, watch this. The latest Rage gameplay trailer. I think the footage speaks for itself.
http://www.gametrailers.com/video/arsenal-gameplay-rage/712648