This is a genuine question.

Can someone explain why this is the case?  Did MS just throw cash around?  That seems hard to believe for one game series...

I thought it was some licensing stuff or something; GT has 'real' cars whose manufacturers don't want their cars damaged. Or something like that. I've really heard of it only once, and magazines seem to be pretty inaccurate even if they have the right direction. That said, it seems that Forza has real cars as well so I don't know. Maybe it's using more money, or maybe Polyphony Digital has thought it's not necessary due to the series doing well even without.

I honestly have no idea.

Would like an answer though.

The problem with damage technology in racers is that it seems a bit off to hit a wall at 170mph and only have a slightly dinged front bumper, yet if you can truly crash a lot of players would never finish a single track.

Never played either of those games,so I don´t know.

From what I've heard, licensing issues arose when GT wanted to show just how real their game was. The licensing issue shaped the way the game's style developed.

But I don't understand why that doesn't effect Forza?

My dream was that they would include an extensive damage model in Forza 3 and give us a destruction derby type experience! Man I loved that game on the PS1!!! I can't believe no-ones given us one for this gen...

Most simulation racers have to pay for the licenses to use the cars. In those paid contracts they are able to secure the ability to damage the cars. Polyphony Digital is given free licenses to use vehicles, including many manufacturers that do not want to see damages on their cars. Forza does not have licenses with those certain cars or car makers either as far as I know. Since GT is being given free licenses(because of the popularity of the series) Polyphony has no bargaining rights to get the manufacturers to agree to the damage. For GT to implement damage, they'll either need to:

1. Cut out the car manufacturers that say no.

2. Bargain them into allowing it, even if it takes money for it to happen.