I also think that it's a poor description of what's going on. Judging by the videos, they means that the everything in the level has physics capability. In on

I also think that it's a poor description of what's going on. Judging by the videos, they means that the everything in the level has physics capability. In one preview clip, they show weapons destroying part of the ceiling, and then a large chunk comes down and lands on the ground. It's pretty obviously using physics to do it. There's also water and sand shown. So I think what they really mean is that every single pixel can move, unlike most games where the background tiles are locked in place and the player can never affect them. In 3D games, they usually say something like "Fully destructible environment".