Head here for the HD stream.
Crytek came to GDC 2009 with a demo of CryENGINE 3. The new engine runs across the PC, Xbox 360 and PS3, in a bid to make development cycles cheaper, better, and faster for themselves as well as their licensees. Additionally, the engine will run on future consoles by using simple internal updates, so developers only have to worry about making the game, not porting it. An updated what you see is what you play (WYSIWYP) toolset allows developers to edit in real time across all three supported platforms. CryENGINE 3 contains numerous updates that developers can take advantage of: destructible environments, cloth simulations, hundreds of light sources, a real time soft particle system, real time dynamic global illumination, motion blur, depth of field, natural lighting, soft shadows, and a whole host of additional features.
We came away quite surprised. The demo we saw was running on the Xbox 360, and honestly, the game looked roughly about as good as Crysis with high quality settings. The environments looked stunning with dynamic light sources coming from every single direction and advanced water effects that reacted to gun fire, explosions, and even incoming rain. We're looking forward to seeing what kinds of games developers build on the console with CryENGINE 3.