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There's actually a considerable amount of "cheating" done in Crysis as is the case in virtually all games.

There is a definite proximity field in terms of what gets rendered fully and to varying degrees as well as a proximity field that defines AI interactions and reactions. It just happens to be broad enough in Crysis that it maintains the illusion of encompassing the entire environment/level.

If you rush through the game (easy with "maximum speed" on) it's easy to see the texture and resource streaming in action along with the pop ins and everything that streamed resources entail. It's actually a lot more noticeable in Warhead.