The question "Can it play Crysis?" will have a new level of meaning in Spring 2013 (early as February) when Crysis 3, the latest installment of the series, becomes available on Xbox 360®, PlayStation®3, and PC. If the tech trailer is any indication then Crytek has managed to significantly improved the realism of characters, water and other physics. Take a look at the tech trailer and see if you find it convincing enough.
“Now, with DirectX 11 support, real-time rendering has gotten even better, allowing for some of the best visuals ever seen. With CryENGINE®3, what you see is what you play as the new tools for the engine allow for tessellation in real-time, improved ocean and water rendering, enhanced character technology, and dynamic volumetric light beams and light shaft effects. These new tools can be appreciated in the beautiful visuals of Crysis 3, from the lush environments and lighting effects, to the detailed characters.” – CryENGINE 3 Crysis 3 Tech Trailer [HD]
UPDATE: Crysis 3 was released on February 19th, 2013 in North America, and February 21st in Europe.