Halo 3 utilizes a proprietary, in-house graphics engine, often referred to as the "Halo 3 Engine". This engine builds upon the technologies of the Halo 2 Engine (and previously the Halo Engine) and is re-optimized for the architecture of Xbox 360.
Bungie has also stated that the draw distance of the game will be in excess of 10 miles (16 km). Sophisticated new atmospheric models are used in the game to replace the traditional skybox, allowing several layers of cloud and atmospheric cover, and even a pseudo "space" beyond that. Water effects are also dramatically improved, and water can now reflect and refract images simultaneously. As well as being able to simulate effects such as waterfalls, water will visually flow around objects in its path and splash when players, vehicles, or other objects travel through it.
Releasing this year: September 25, 2007