All games suffer from the boxy world effect, it's just how game engines work, however, games that utilize UE3 do a poorer job of hiding it for whatever reason. You may contend that fact for as long as possible, but the fact of the matter is that to me that games that utilize UE3 do a poorer job of hiding it.
STALKER has a great engine (XRAY) but they've since switched to CryEngine 3 to get their game to the larger, console market.
Mass Effects gameplay is shallow, not the story. It's essentially Gears of War with a different art style and significantly better story. So if Batman Arkham Asylum feels shallow, Mass Effect feels shallow, and recently, APB feels shallow gameplay and mechanics wise, can you really keep saying that it's not the engine but the developers? I feel like a majority of my issues is due the lack of a commonground physics platform for UE3. With non-GPU accelerated Physics via nVidia PhysX technology, the physics displayed in UE3 games is very lackluster. I'm not sure if the game developers purposely decided not to add physics per in game item and units so that there are less calculations done and less power necessary to make the game playable at higher FPS or what.
I'm not saying at all that source would be a better platform for this game, nor am I trying to say that UE3 was a bad engine choice for this, it's just I as a singular person and spectator and purveyor of games just notice a common theme with UE3 games that all other UE3 games share.
A great underrated game that really does the immersion thing well (but is pretty generic otherwise) is Metro 2033.
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Anyway, for more specific questions particularly directed to Xendance, if you could please answer them:
Is there going to be a dynamic weather system? Usually dynamic weather is reserved for SP games but say for a game like Bad Company 2 where there is a limited selection of maps (but a plethora of game modes), something like dynamic weather would make the levels more interesting and fresh, giving some unique playthroughs I would be lead to believe.
How will foliage be handled? I understand that you guys worked hard to get UE3 with little or no strings attached via contest (and won rightly so) but things like trees and grass. Will their density be handled with the tools on hand or will third party technologies such as SpeedTree be licensed? Will they (trees and grass) "move" as if to give the impression there is air and wind in the game or will these things be static to give a better performance boost? I ask this because I think if something like that would be done, it would compliment something like the bullet drop and ballistics you guys are working on. Again, just a question. In no means am I critisizing or questioning your guys' design choices.
I understand that you guys have your own ideas and I fully trust your design choices and implementations but something I did love with Battlefield: Bad Company 2 was that during the chaos of fighting, you would hear characters scream ambient things while playing like "I f***'ing got that bugger" or something to that effect which made you feel like you were in a war. Will something similar be done for RO? Or does something like that not fit in with the direction or type of combat that will be in RO: HoS?