I'm glad I am not making a space game...

...because I would be completely incinerated by this.

It gets away with piles of beautiful content at low cost thanks to some really clever algorithms. How they manage to make it look quite this fantastic is beyond my reckoning.

Here is a nice development journal:
http://www.gamedev.net/community/forums/mod/journal/journal.asp?jn=263350

The plan seems to be an MMO game, eventually. (Though they aren't really far with the game part yet).

Warning: Looking at this may suck dry hopes and dreams. (As I said, thank God I wasn't serious when I thought I wanted to build something exactly like that).

Oh, and to rub it in, there is the combat prototype, which (unfortunately) shows rather clearly this amazing engine is not just a hoaxer with too much time on his hands -- and that it runs pretty well, to boot!
Mmm - this, too.

Wow this looks absolutely brilliant!

yeah, I've been salivating over this for the last few months. The videos look amazing. This is how I saw Elite going after frontier came out, sadly that never happened.
They should licence this and use it to make elite 4.

it looks great but all you can see in the videos is flying from space to simple hills, idd like to see citys etc somewhere to land. although its amazing to look at theres not really much of a game there yet.

I have been waiting for this kind of game for a long time
There is an other similar game , already active : EVE

Eve doesn't have close-up terrains? But yes, it looks nice too.

I like X3 reunion as far as actual space sim stuff goes. The lack of terrain and planet landing is the only thing that lets it down really.

Otherwise its a fantastic modern day elite type game. Bit of a steep learning curve. That game in the original post has nice planets and terrains, If the ships can look as good at X3's it could be the best thing ever.

I'm not sure aboout massively multiplayer games, I'm really not into those at all. Would rather it were single player.

Wow, that's a pretty nice engine. I thought to do something like that but this is obviously quite far advanced already. Always thought it should be possible to do something like terragen 2 but in realtime with everything procedurally generated. Nice!