Originally posted by: pontifex
Stalker: Clear Sky (or is it skies?) is supposed to have some impressive stuff like that.
It's Clear Sky indeed, not Skies like many think
And yes, in Clear Sky GSC GameWorld managed to come up with some very impressive smoke/dust effects. In a video recently released you can see the player shooting in a room with some pale smoke coming out of a vent or something similar to that, and each bullets pushes the smoke around as if it really created a wind "tunnel" inside the smoke. There's also some nice water effects on surfaces during rainy days. However all that I believe will only be possible with DirectX 10, because all of the pictures and videos of the DX9 render I've seen for Clear Sky did not show the same effects, despite still being way more beautiful than anything Shadow of Chernobyl can possibly do (it's very comparable if not actually more beautiful than even Crysis, seriously).
And about the fluid physics, the next revision (not next "version") of the Unreal Engine 3 will feature equally impressive stuff like that, if not better. There's a technical demonstration video somewhere showing some UT character in a room where you can see a Blob-like entity showing off some of the next UE3's capabilities, the entity changes from semi-liquid to entirely liquid and then glue-like and it bounces here and there and so on, the character touches it and the thing dynamically reacts and deforms itself as the character plays around with it. It's stuff like that that's coming up in the near future. With the GeForce 9 out and the upcoming Radeon HD 4000 series I think that we're in for some seriously revolutionary game-play effects in our future games.