The Graphics of Halo 3

Halo 3 will utilize a proprietary, in-house graphics engine aptly named the "Halo 3 Engine". This engine builds upon the technologies of the Halo 2 Engine (and previously the Halo 1 Engine), and is re-optimized for the architecture of Xbox 360.
As detailed on the Bungie Studios website, it will employ advanced graphics technologies such as High Dynamic Range, global lighting, real-time reflections and real-time depth of field effect. Depth of field however will only be used in cutscenes and not during gameplay. Certain surfaces, including the Master Chief's visor (when visible) and the armor of a Ghost, will have real-time reflections. Most of the objects in the game will cast real-time shadows on itself and the environment around it, including the game's plant-life.
Halo 3 will use Normal, bump, and parallax mapping to add much more detail to surfaces without dramatically increasing the number of polygons. Bungie has also stated that the draw distance (horizon of the game world) will be in excess of 10 miles (16 km). Sophisticated new atmospheric models are used in the game. Dust and smoke particles can be used to add to the realism of the environment, and the haze effect which is often used in video games to save processing power is so realistic that it actually costs processing power. Water effects are also dramatically improved; it can reflect and refract images simultaneously. As well as being able to simulate effects such as water falls, it will visually flow around objects in its path and splash when players or vehicles, or other objects, travel through it.