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Deformable physics like that isn't much of a problem if you only have one vehicle in an empty world on the most expensive consumer-grade hardware.

CryTek are showing off their own physics engine here, that's the big news. There's nothing too special about their physics engine over others, it's more about the pipeline and the amount of work needed to create a soft-body vehicle.

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It's not their own physics engine. It's a licensed technology:

http://beamng.com/

You're right. I'd heard that they were now working for CryTek, but I can't find that confirmed anywhere. They still appear to be independent.

But my point still stands. What is special here is the workflow in creating a physics-based vehicle. Other physics engines like Havok come with pre-made rigs, but tuning a vehicle for desired gameplay is still hard. Making it run fast in a game environment is harder still.

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