Iria

Just when you thought it was safe to go back in the water, the Hydrophobia Website offers a new E3 movie showing off Blade Interactive's upcoming game where wrinkly fingers are the least of your waterlogged problems. Word is: "The first trailer of Hydrophobia has been released at E3, showcasing the revolutionary HydroEngine fluid dynamics system. For the first time ever, water in games behaves exactly like the real thing, flowing from one area to another and interacting dynamically with the environment."
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Source: Blue's News