This is the graphics engine Rockstar games used in their newest Grand Theft Auto game, out this coming Tuesday, April 29.
Company web site:
naturalmotion.com/euphoria.htm
This engine allows completely CPU driven physics and collision detection. Because it is completely dynamic and is not based off of key frame animation or motion capture, it is extremely hardware intensive. GTA4 will be the first blockbuster to launch using this engine, and will get its real test in the multi-player arena as players join up on their XBOX 360 consoles. This sort of dynamic technology is the future, and creates new possibilities for gaming we've never imagined. It will however, take a while before most people's home PCs are powerful enough for this to work its way into the Massively multi-player arena in any really pure dynamic form.