Simulating the physics of water was always tricky and game engines sometimes still have to use mechanics to make it feel real. New fluid simulation technique, using Position Based Dynamics approach. ... Position Based Fluids Demonstration
Awesome! That's one thing that's been bothering me about current and next gen games. Everything seems to be getting prettier and more realistic except for water. What Half Life 2 and Havok did for solid objects this will do for fluids. Now liquid can finally have it's day in the sun.
If a GTX 580 is capable of handling that scene. A System with a Titan would do the trick in a real game scale probably. Or if you combine a GTX 580 for PhysX (if this can benefit from PhysX) and lets say, a GTX 680 for the rest of the rendering job. Just awesome!
Some more videos http://www.youtube.com/watch?v=UDqtEFDCSlc http://www.youtube.com/watch?v=LhcgjPFykXY
Bullet had this from the start - Those small balls interacting with each other http://www.youtube.com/watch?v=yvBKexUv4bM&hd=1