Io has taken the basic crowd system from Hitman Blood Money and extended it heavily. The developer is happy with the number of on-screen characters it can produce - it can throw out around 1,000 without much trouble - and is currently working on making the crowd work in groups and with logic to their reactions. Crowds will, apparently, feature heavily throughout the game, with civilians being present during street battles, for example.
In the night club - where Kane and Lynch have only limited ammo - the crowd is intended to provide the player with "sophisticated cover" from security guards, and it's beneficial to escape the club undetected. If the duo is spotted and gun shots are fired, the crowd around them scatters, effectively leaving Kane and Lynch exposed and vulnerable.
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