Unfortunately DayZ will not be using the ARMA 3 Engine. Previously, before his last interview with ShannonZkiller (see youtube) , He said DayZ would be built around the Take On Helicopters engine which is a hybrid of the Operation Arrowhead engine (ARMA 2.5 if you will). In that interview with Shannon he said they have an all "new" engine built for DayZ specifically. That being said Dean (Rocket) Hall has been known to embellish a tad.
After watching this video I’m led to believe they are still working with the original DayZ engine (Real Virtuality 2) to show off some of the new features. The reason I say that is because of the Peripheral Dots seen on Matt's character. These are supposed to have been removed in the new engine by Rocket himself.
That being said I’m confident the "new" engine, most likely another hybrid of Real Virutality 3 Engine, will be a bit more optimized than the previous one.
Also please please PLEASE have RAGDOLL!Edited by Strickt - 2/7/13 at 10:44am