Strangely, all this organic intelligence didn't stop one of the thugs from running straight into an explosive barrel and shooting some 200 feet into the air. But with the release date set for summer of 2007, the developers should have plenty of time to work out the kinks.
More impressive than the artificial intelligence was what the presenter called "digital molecular matter." Thanks to next-gen processing power, the developers were able to build every object in the game with a molecular structure that mimics the real thing. The end result is that wood splinters like real wood, metal gets dented and rubber flexes. Sidewalk benches break down like they're made of balsa wood, which looks a little odd. But even so, we're looking forward to seeing how the mechanic shapes up next year, and also to seeing how it'll be scaled back for the PS2 and handheld editions.