Forza 2
Of course there are limitations. If we just featured race cars or a really small number of manufacturers, we would be able to completely simulate damage down the last detail. However, most of the manufacturers are made very uncomfortable by damage that would injure the driver. Therefore, we can't roll the car over, start the car on fire or ball the car up completely.
http://international.xboxway.com/in..._2_dan_greenawalt_XCN_interview_xbox_360.aspx
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Forza 3
http://forums.forzamotorsport.net/forums/post/65086.aspx
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NFS Shift
We do as much as the manufacturers allow us to do, which is anything up to the point of encroaching the driver's safety zone, which means we can't tear the doors off.
http://www.gamerzines.com/ps3/news/gt5-damage-not-as-realistic.html
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Juiced
Total destruction is off the cards where licensed cars are concerned, but we think you'll be very surprised at what manufacturers are allowing us to do. They are certainly a lot more open minded and forgiving.
IGN: And what is a typical conversation like with the manufacturers with regard to damage to their cars? Which manufacturer is the most lenient? Which is the most conservative?
Don: They are generally all of similar mind-set
penalize the player for causing damage, don't compromise the passenger compartment, don't kill pedestrians and don't set the vehicles on fire or explode them.
http://uk.ps2.ign.com/articles/507/507293p2.html
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GT4
Then we come to car damage. We also planned to implement this feature in GT4 but we found that, technically, we could not do it to a level that satisfied our respect for the Gran Turismo brand.
Unfortunately, due to the technical limitations of the PS2 and the high standards we hold for the GT brand the time was not right to allow everyone to enjoy that with GT4.
However Yamauchi-san also tantalisingly confirms that a proper damage model will be implemented for GT5 although he doesn't present any further details,
http://www.computerandvideogames.com/article.php?id=116051
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KY at 2004
"As a future view "I think that damage expression etc. is very important in a meaning called a reality. The greater efforts in the meaning of completing it are required. In "GT5", I think that it is a theme. When it crashes, I want to do changing based on physical calculation perfectly absolutely."
http://game.watch.impress.co.jp/docs/20041109/gt4.htm
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And there was an old Criterion interview talking about how Burnout games will never get the same level of damage with real-life cars as with fictional brands. I can't find the link.
Enought facts??