Let me preface this story with a little walk down memory lane-
Those who are old enough will remember the original Red Faction , which launched on the PS2 back in 2001. The game boasted what was called "GeoMod Technology," in that any part of the environment could be blasted away with explosives. This often didn't lead anywhere, and not every wall could be blasted, but it was a really cool feature.
Now, perhaps we could look at Minecraft , where of course everything is destructible as that's essentially the point. However, there are still very few games were our surroundings include a lot of destructible objects, and the maker of Havok Physics says this will change in the new generation. It kinda has to.
In speaking to GamesIndustry International , Havok's Andrew Bowell said destruction will be a key element in games for the new consoles:
"The way that ragdolls became the last generation thing and everything had to be ragdolls, we reckon next generation, everything's going to have to be destructible. It will be no longer acceptable to walk into a room where you can't punch a hole in the wall or break a table and see it splinter."
You've seen Havok Physics on display in games like Uncharted 3: Drake's Deception , L.A. Noire , and the Halo games. Those games had virtually nothing in the way of destructible environments, by the way.