Although some of the systems were developed by Microsoft Research and demonstrated back at Build 2014, Cloudgine's cloud-powered destruction physics were enlisted to power Crackdown 3's multiplayer components, which features full-scale non-scripted destruction physics, allowing players to destroy entire skyscrapers with unprecedented realism.

Cloudgine recently was purchased by Epic Games, however, leading some to wonder how this might impact Crackdown 3. For those concerned, thankfully, it seems Crackdown 3 won't be affected by Cloudgine's jump to Epic, owing to this confirmation we received from a Microsoft spokesperson.

Since its inception, Cloudgine's research and development has been based on Epic's Unreal Engine 4. Cloudgine's cloud computing and online technologies will enhance the UE4 feature set to help developers push the creative and technical limits of games, film, animation and visualization through advances in physics simulation and networking.

In a blog post on Epic Games, the company hailed the acquisition of Cloudgine, noting a desire to bring the company's systems to Unreal Engine 4 itself, which powers many modern games.

Work continues on "Crackdown 3" and is not impacted by this news. We look forward to sharing more on "Crackdown 3" and having fans get their hands on the game when it launches later this year.

We are excited to see gaming experiences get better with cloud-computing becoming part of UE4. Also, a sincere thanks for both studios' work done in partnership with MS Studios to build the cloud-powered technology in "Crackdown 3" from scratch.

While Microsoft might have potentially lost a unique selling point with Crackdown 3 in the future, the prospect of cloud-powered physics making its way to more titles (including Epic Games' own Fortnite) in the future is an exciting one.

For those interested in the tech, all eyes will be on Crackdown 3 when it finally launches, to see how well this technology works in practice. We tried it out in closed conditions all the way back in 2015, and came away impressed, but will it work properly in your living room? Only time will tell.

We haven't seen much of Crackdown 3 following its delay into Spring 2018, but from conversations I've had with people familiar with the game's development, it sounds as though the game is coming along nicely. Until then, take a look at our Crackdown 3 campaign preview from last year's E3, and let us know your thoughts on this news in the comments.

Crackdown 3 is targeting a Spring 2018 launch for Xbox One and Windows 10, and you can pre-order it now for $59.99.

Hands-on with Crackdown 3

See at Microsoft Store