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If you thought the real-time Samaritan demo was impressive on the Unreal Engine 3, you should check out a photorealistic horse in an office running on the new Fox Engine by Kojima Productions.
Manatank managed to snag a few photos of the newest iteration of the Fox Engine, the same toolset used to create the Metal Gear games, and all I have to say is 'wow'.
It's rare we get to see Eastern developers showcase an engine-in-progress like we do with a lot of other Western developers, especially the way we get to see the comparison shots of real life and the Fox Engine. But I'm glad we at least have an idea of what Hideo Kojima and crew will be capable of once the newest version of the engine is up and ready to go.
As of this writing the team has no dedicated AAA projects in the works (as far as we know of) other than the collaborative action game with Platinum Games coming out on multiple platforms, Metal Gear Rising: Revegeance. However, MGR: Revegeance won't be running on the latest Fox Engine.
One thing worth noting is that the Fox Engine will be able to render full-time, physics-based lighting effects for some of the most realistic virtual representations of environments and characters yet. I guess ENB and iCEnhancer modders Boris Vorontsov and Hayssam Keilany will have some stiff competition when it comes to realistic lighting shaders.
Don't hold your breath on when you'll be seeing a full-fledged game making use of the new Fox Engine, though. It usually takes about two years to get a game out of newly fleshed out engine and with that said, don't expect a game running on the new Fox Engine with full physics-based lighting in tow to appear on the Xbox 360 or PS3, their hardware just isn't capable of that sort of thing. I get the feeling Kojima is planning something big for the next generation of consoles, though.
You can check out the screenshot comparisons of real life to the Fox Engine over at ManaTank.