Looks like the destructible buildings in age of empires 3. That uses Havok physics. It is completely possible to get havok in A7, it's just that licensing costs a fortune...
Also remember that red faction:gurrilla is a ps3 game. PS3 has 8 cores as apposed to the 2 or 4 on a pc...
Red Faction 3 also runs on the Xbox 360, wich has 'only' 3 cores. It should be able on a pc without many problems
