Ubisoft released a video showing off the Snowdrop Engine fromThe Division, and it seems like they thinks it's really cool. In fact, they say that "never before has a video game reached this level of detail." I think that's a bunch of hyperbole, and that Ubisoft just wants you to know how cool and next-gen it is.
The Snowdrop engine will have a dynamic day and night cycle, volumetric lighting, dynamic global illumination, procedural destruction, an advanced particle system, and dynamic material shaders for weather effects. These are all things that have been done before, so it's not really groundbreaking technology, but the game does look really pretty.
Of course, this demo was probably created on a crazy high-end PC, and the actual game will look no where near as good.
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destructoid's previous coverage: Tom Clancy's The Division