About the game engine, CryEngine 3 (for PC) could be a great engine. It's also pretty moddable, and got very decent graphics. I'm not sure it can be done, though. Like Thor said, maybe it can use DX11, because it won't show up in a few years. Or maybe it will get a reboot ? About the gore . . . not for me. After all, this is a fantasy game, it should be quite friendly.