No real 3D water deformation, instead it is a shader to simulate 3D ripples in a 2D plane. Such shaders are also used in Oblivion/Morrowind?, SP
T and some other games with different quality.
So far of the games I have played FEAR, Crysis, Far Cry Predator (xbox360), STALKER has true 3D water in larger quantity. FC: Predator is the most stunning on next-gen consoles so far in respect of water effect/quality.
I would say Far Cry's water is alteast matching it and many games have similar water type, it is standard I would say except shaders for creating ripples means +. Splash quality is very inconsistent between different games and even in the same game different type of splashes can look good/bad. For example Far Cry has excellent bullet splashes that looks completly like volumetric particle 'water splash' (might be particles since at v.high particle m.count is 8192 particles) but water casquades from an explosion under water looks bad.
I guess it is becouse it is very fillrate intensive to either have lots of textures to simulate nice splashes/foam and/or lots of particles for this.
far Cry (PC) vs FC Instincts: Predator (xbox360) water.
http://www.gametrailers.com/player/9338.html
[gt]9338[/gt]