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Actually I think you're right. I just found the video and he states that it is being generated over a standard Half Life 2 BSP level. I don't believe the Spark Engine is equipped to render those types of environments.
Out of curiosity, will it ever be added back to the roadmap to get the dynamic infestation as beautiful as the very first teaser trailer? From what I understand, that was a procedurally generated demo from the Spark Engine itself, so the capabilitie…