This video shows game engines making a move to the next level, adding real physics to the destruction of structures. It looks as though every board, brick and stone is being modeled individually in the engine, each with its own destruction characteristics dependent on the weapon that is hitting it:

This is a major step up from things like Persistent Bullet Holes found in most games.

More on the game: Breachgame.com

Breach uses Atomic’s innovative Hydrogen™ Engine to give players inventive ways to use destruction so they can stun, manipulate, and eliminate their opponents with a new toolbox of tactics. For the first time, virtual warriors can punch holes through floors to get the drop on enemies below, breach both interior and exterior walls, crush enemy fighters by collapsing ceilings and balconies, and even shoot away individual bricks to create “shooter’s holes.” Breach is the first game to mix Atomic’s ground-breaking Active Cover System, which lets players attach instantly to cover, quickly pop in and out of cover, and peak and blind-fire from behind cover, with an environment in which virtually anything that can be used for cover can also be destroyed. As walls get eaten away from bullets and explosions, characters will be able to use the new openings to return fire without leaving the protection of remaining cover.

The developer is Atomic Games:
- Atomic Games – “Breach introduces the most robust destruction system ever released in a 3D shooter, unveils an Active Cover system that gives you huge advantages for using cover – even as it is being destroyed, and gives you a dozen unique, real-life spy gadgets.”
- Atomic Games