This isn't a game but if you’d like to see what CryEngine 3 can do when using it’s real-time 3D technologies are being used for urban or industrial projects, you should have a look at the real-time demo. From Enodo which uses gaming technology to create interactive models and immersive, 3D environments for industrial design. Source VG247. Spoiler http://www.youtube.com/watch?feature=player_embedded&v=PpBiExHoaz8#!
Yea CryEngine 3 has shown to be bad ass thus far. Here's the damage physics from CryEngine 3. This engine is great. They need to put it in a open world game to unlock it's full power.