Yeah, how exactly did ID lose out so badly to Unreal Engine for licensing? Like, they really ruled the roost, and to be honest, I prefer games that are deep-down ID engine games compared to Unreal games. Like, you can subtly feel how the Call of Duty games are ID tech games.
Except they are not. After CoD 1 IW made their own engine in house. It was originally based off id tech 3 but is 100% rewritten and now on its 6th version and is no way related to id tech. Basically the market for licensing shrunk with major publishers having their own engine. Ie: EA has frostbite, activision has IW, etc. that and id could no longer license id tech to companies outside those owned by zenimax after zenimax bought them.