The studio is working on an unannounced game using the id Tech 5 engine, which will be published by Bethesda Softworks for multiple platforms.
MachineGames was founded by former Starbreeze employees, who had worked on The Chronicles Of Riddick and The Darkness.
"Working with our new colleagues at id and the world class publisher, Bethesda Softworks, is a tremendous opportunity," said CEO Jerk Gustafsson.
"MachineGames has assembled a dedicated team that has extensive experience working together to produce quality games. We are excited to create a new AAA title for gamers on id Tech 5 that will push the game development envelope."
Last month ZeniMax announced the purchase of Shiniki Mikami's studio Tango Gameworks.