No, this is not true. Oblivion will not recognize newer cards because, well they're new. You need to manually set the options to High, or Very High, as chakaru11 mentioned. You do this from the Oblivion Launcher.exe. Other than that, have you installed any mods? Or are you running a strictly vanilla setup. Vanilla meaning only what was included in the GOTY package. I'm assuming you got the GOTY Deluxe with all the DLCs? Make sure they are selected in the Oblivion launcher - Data Files. If the game still fails to launch you should first try to validate your files through STEAM. If there are any errors STEAM will correct them. If this doesn't work you will need to uninstall Oblivion, delete local game content, and reinstall. Report back with any progress you make during any of the above steps. Good luck. I turned on my computer earlier tonight and tried to play Oblivion once again. Steam started downloading "updates" and now the game works! I have no idea what was happening yesterday. Thanks for your help.