It freakin rocked...and that was only like 2 minutes of gameplay (it is a teaser) but it looks pretty damn sweet. Did experience some slight slowdown but that is to be expected from unoptimized code (A.K.A. Pre-release demo)
And i remember hearing about it using the damage system from the Stranglehold game(pretty much all stuff is destructible) it seems like it...
Watch the end of the teaser demo and see what i mean...
P.S. its Unreal Engine 3 Running so you know it looks good.
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