Nope, it's CPU physics AFAIK. They showcased it using quad cores a while ago. You can find that video on youtube if you search for it. I think it looks magnificent, but my main motive for wanting Alan Wake isn't necessarily graphics or any it's technological aspects. Max Payne was, and still is my favourite game series ever on the PC. An amosphere and storyline of the quality Max Payne have, is hard to come by (maybe Half-Life). The very same writer (Sam Lake) is behind Alan Wake, and I think it looks absolutely AMAZING!
Jeremy, mate, commmmmon.. gimme a break will ya' - you KNOW Crysis is the most anticipated game this year..
Coming out "soon": Bioshock. (Recent video of Bioshock btw) Coming out "when it's done": Fallout 3, Project Offset and the soon to be announced future Blizzard title (IF it's StarCraft related - and we all know that, eventually, it will be).
CRYSIS (and the reason why many have or are thinking to upgrade) for me though (in order of anticipation) NBA Live 08 (hopefully the PC version gets the next gen graphics as NBA Live 07 on PS3) CRYSIS WORLD IN CONFLICT (im an RTS fan) SIM CITY 5 TIMESHIFT
Well, there are alot of good games on the horizon, but ultimately Alan Wake is the one i really cant wait for. In terms of storyline it looks really different and quite unique to anything else. Graphics/physics are obviously a bonus Second to that, and in no particular order: UT3 Crysis bioshock World of Conflict
anticipated PC games for me are... Bioshock UT3 The Witcher Crysis Clive Barker's Jericho Assassin's Creed Alan Wake
well if NBA live 2008 would at least look like NBA live 07 on PS3 (and fix the gameplay)..i wont be playing any other game on my RIG