I came across this game today on Slashdot that is being built. I downloaded the video and watched it. It looks very awesome. The video is realtime gameplay and stuff. It looks absolutely amazing. I may finally have the motivation to build a brand new gaming machine if this comes out anytime soon. I'd say it's a little ways off though. They don't really have a name for it yet, but they are making some damn good progress in the engine though. Plus there is a shortage of fantasy based FPS games.

http://projectoffset.com/game.html

Ok, that looks positively bad ass.