In the world of racing, there has seemingly always been the Gran Turismo series. Standing in the forefront of graphical excellence, realism, and depth, GT is one of the must-own first party titles from Sony. Of course, in 2005, Microsoft had something to say about that. The original Forza proved to be one of the most realistic driving experiences ever created (in some ways even rivaling Sony's beast), and was among one of the first to feature this style of play in an online multiplayer environment. With the announcement of a sequel, much is expected from the Microsoft Game Studios' team, and if the recently released demo on Xbox Live is any indication, they are definitely headed on the right path.

From the moment you boot up the game, things look great. The menus are intelligently laid out, with items structured in manner that greatly reduces finagling. The graphics mostly follow suit, with a few minor issues. The cars themselves are incredibly detailed and realistic, as are the backgrounds on demo track. Unfortunately, there are some noticeable jagged edges, and while it doesn't take much away from the experience, it's a little disappointing to see in this latest generation of consoles. Hopefully these little blemishes will be fixed up before the full game is released. Even still, with the game's incredibly smooth frame rate, it's hard to hold a grudge.

Perhaps the most significant graphical addition is that cars now suffer collision damage, which, while purely cosmetic, adds something that has never been done before in this type of realistic sim. In other previews, it's been said that the Sim mode uses this feature a bit more effectively, but even as it is now, it still looks excellent. The crashes especially, are a sight to be seen, and definitely make good use of the 360's visual power.

Forza 2's AI is another highlight. The computer controlled cars seem to learn the track as they drive rather than having pre-determined waypoints directing them where to go. It's this system that gives the artificial intelligence a real dynamic feel, as it handles races differently each time depending both it's opponents and tracks. Similarly, the AI reacts to you differently each time as well. They will intelligently try to avoid crashes, unless you smash bumpers with them first. They sometimes remember previous aggression and try to get you back when you least expect it. With only one track available and three laps, we're not sure how the AI plays in longer races, but based on what we've seen so far, it's definitely coming along quite nicely.

Helping to round out the package is the controls, which couldn't be done much better. Even though "arcade mode" is all that's playable in the demo, this mode is still more realistic than anything previously available on consoles, and the control you have over a vehicle reflects that. Every corner needs special attention, because the ground actually reacts to your tires. You slide considerably if you don't know what you are doing, which you typically won't on your first few playthroughs.

After successfully whetting our appetite, there is thankfully very little time left until Forza 2's release date. With so much to look forward to, it's going to be hard for 360 racing fans to wait.