Quite interesting technical demo video was revealed today by Matthias Müller-Fischer, PhysX SDK Research Lead in NVIDIA.
Update: Real Time Dynamic Fracture explained.
It is showcasing a further evolution of a dynamic real-time fracturing and GPU accelerated rigid body simulation algorithm, firstly presented at GDC 2012. As you may see, improved method works perfectly with complex arbitrary meshes, not just basic shapes.
A paper describing this technology, called “Real Time Dynamic Fracture with Volumetric Approximate Convex Decompositions”, will be available for public download later on, once it will be approved for SIGGRAPH.