Sony announced earlier that they upgraded their cross platform engine, the PhyreEngine, to version 2.40.  New features included 'foliage rendering', which allows for more ultra-realistic trees and leaves, best seen in the PSN exclusive title, Flower.

For gamers though, the bigger news is that Sony has seemingly unveiled 4 unheard of games which are all using the PhyreEngine.  These include an unamed title from Australian developer Big Ant Studios, puzzle/platforming PSN title Topatoi developed by Boolat Games, third person action game Strength of the Sword from Invent Studios, and finally, The 7th Seal by Paul Cuisset's(of Flashback fame and Shaq Fu notoriety) studio VectorCell.

Hopefully as GDC goes on, we'll hear more about these titles.