Bungie's shown Halo: Reach and revealed an impressive new engine that is far and away the best the series has seen. According to an article in Game Informer magazine, scans of which have popped up on the internet, motion capture is being used for the first time. Image Metrics - the company behind the mesmerising Emily demo - is in charge of facial animation. State changes from walking to running to sprinting should also now look believable, as should pivoting on the ground. There's a new weather system, and Bungie has made the sky into a real object that ships can descend out of and onto the planet from.
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