Bethesda Softworks has unconfirmed the Elder scrolls MMO announcement that was posted on destructoid.com. Whilst this represents a blow to hopes of Elder Scrolls fans waiting for an Elder Scrolls MMO, this is not a complete denial that Elder Scrolls Online is not being worked on and Bethesda have still not completely denied the title rumor.
[Update: It seems that the original story which Jim sourced in this article jumped to more than a few conclusions. We just got off of the phone with Bethesda's Manager of PR and Marketing Erin Losi, who wanted to clarify a few things.
For one, Bethesda has not announced or confirmed that an Elder Scrolls MMO is in the works. As she points out, the $300 million dollars in question was received by Bethesda's parent company, ZeniMax Media. This money will be invested across a "multititude of projects."
As for the an Elder Scrolls MMO, Losi told us that no such announcement has been made. Looking at the above quote from the original QJ.net story, it appears that some drastic leaps in logic were made to reach conclusion of a "confirmation." Regarding the registered Elder Scrolls Online domain, Losi points out that this is standard practice, where Bethesda will snatch up a number of domains related to their licenses.
We apologize for any confusion we might have caused with this story, and for now, the Elder Scrolls MMO simply doesn't exist. - Nick]