We kind of missed this one, but as they say, better late then never.
Our friends from CroTeam, the developers of the Serious Sam franchise, have demonstrated their new engine in an interview for a Croatian newpaper a few weeks back. It looks impressive.
Top to bottom, their tech demonstration shows promise; good, detailed models and texutres, combined with excellent lighting and shadows, and check out the water, nice work there too. You can take a peek at the pictures here, but keep in mind this is a technology demonstration and the images are scanned.
Hopefully the final product will look just as good, but just what the final product will be is too early to say. Serious Sam 3 is coming of course, but some of the screenshots may point to a second project, a tactical FPS. These guys even have a nice physics engine inside that takes care of the water and some other stuff.
We are dying to try the game and we wish them luck in any case.