Everyone has been impressed with the physics engine in GTA IV. I still get a kick watching my body fly out of the windowshield after I hit an unseen wall. The reactions of the vehicles hitting curbs/objects and the natural reactions of the people are part of the formula that help make Liberty City come alive. This is all due to the Euphoria engine that has been implemented in GTA IV.
The same engine is also being used in upcoming titles like, Star Wars: The Force unleashed, Indiana Jones, and Backbreaker. With the Euphoria engine the reactions of characters are not pre-rendered, but are calculated on the fly, meaning their reaction can be different every time. You can read up more on the engine at NaturalMotions's
website.
Below is a tech demo of Euphoria and the engine in use of the upcoming game
BackBreaker. The pretty graphics in next gen games have been great, but with the increased processing power of new consoles brings the ability to have new engines with these capabilites. These better engines are really making some of the newer games next gen in my book.
