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Now, it just needs better animations, collision physics on particles, ray-tracing on every bullet hole, better gun models, physics based weather, 340+ dynamic lights in a scene, dozens of objects based physics sims on destructible items instead of a few big objects (like the whole roof coming off in one piece), and 7.1 LPCM audio!  KZ2 does those things. 

BTW, what's up with the waves becoming COMPLETELY smooth after about 30ft?  That's just weird.