“Please be excited for E3 this year,” Square’s Enix’s Final Fantasy brand director, Shinji Hashimoto, said on-stage at Sony’s PlayStation Meeting 2013 event today.

More videos show how Luminous Studio hands glass, fog, and metaball particles.

The Luminous Engine allows developers to change attributes like beard length and the number of flies, well, on the fly. You can also play with lightning effects as seen in the movie.

Square Enix’s Julien Merceron provides an update on Agni’s Philosophy, Final Fantasy Versus XIII, and Lightning Returns.

Yoshihisa Hashimoto changed the camera angle to reveal a few secrets. Remember the scene where a Hyena-like monster attacks Agni? Agni actually fights back by throwing punches at the monster.

See all of the cool things Luminous Engine can do with beards and imagine all of the funky hairstyles Square Enix can create.

Day one kicks off with a 30 minute presentation explaining Agni’s Philosophy. Then Square Enix will spend an hour introducing the project by showing concept work and later two hours explaining realtime work flow.

Did you know Square Enix got a dog to do motion capture work for one of the monsters in Agni’s Philosophy? Also see concept art and models from Square Enix’s realtime tech demo inside.

Square Enix say this tech demo is indicative of the quality they hope to strive for in their next-gen games.

Square Enix Japan registers domain names for digitalgamelab.com and agnisphilosophy.com.