Take a look at Mirror's Edge's upcoming demoHavok technologies introduced two new developer engines. One is being called, Destruction, while the other is called, Cloth. Apparently they've been very hard at work in order to get these two engines to the point they are right now and from what we've seen via the video below, we're sure to be impressed by their implementation into future games.
The Destruction engine allows for a complete destructible environment whether it be caused by bullets or explosions. Gamers have seen things like this before within other titles such as Stranglehold, but never to the realistic extent that this engine provides. Unfortunately, the video does not cover this engine, just the Cloth technology.
The Cloth technology is going to give an entirely new look to just that, fabrics. Instead of watching clothes move in a pre-determined way, this technology is going to give them the ability to move realistically. This should prevent things like jackets melding into the character during cut-scenes or gameplay and will definitely be an excellent addition to games in the future.
Havok has stated that there happens to be no plans in integrating the two within one another, so don't get too far ahead of yourselves just yet.

wow that really adds to the realism feel of the game i think! i dont see why they cant combine the 2 engines though... so basically you have a choice! you can have fully destructable enviros or sweet clothing.... why cant we have both! this is BS
A day late. :P
But I'd like to see the destruction one.
why the he|| make 2 seperate game engines? why not just make one with both aspects?
This is another cool engine revealed at GDC. I wonder if there is anymore?
I could imagine that cool cape on a jedi, that would be awsome!
This looks fantastic, can't wait to see it in games. I'm sure that there is a good reason why the two engines are not being combined into one, maybe they work more efficiently separate.
Nothing realy interesting. Even Crysis looks beter...
Na crysis was a let down to all. mersinarias 2 will use something close to the distruction engine pluse drakes fortune hade nice clothes affects how would this compare with current engines and will it surpass current games i have to c and find out for proof.
psn id: gingo.... would liked to have seen the destruction engine but they cloth one is good, not really necessary at this time imo but always good to improve
I see this in Heavenly Sword 2
why cant they put them together? who smart move????? lets desidingly not make games better...?