http://www.firingsquad.com/features/crytek_far_cry/

FiringSquad: Are there any plans to incorporate 3Dc into Far Cry?
Cevat Yerli: In fact yes. In the next patch, 1.3.
FiringSquad: So basically your requirement for HDR is FP32?
Cevat Yerli: Yes FP32 blending.
the plot thickensFiringSquad What kind of additional performance do you think youll be able to get out of 1.3? Will it just be more cases of instancing and more branching?
Cevat Yerli: Uh, let me think. I think we have pretty much a peak on enhancing performance via shader model 3.0. If we get more performance it will be related to maybe fill rate raising, compression (we assume Cavet was referring to normal map compression (3Dc) here Brandon), and other techniques. But its too early to say just yet [inaudible]
Fill rate can be used to essentially achieve less passes, we may find ways, for example to do less passes with 3.0 even more, but not with geometry instancing or looping with the lights, it will be with other techniques. But its still early, were only at the beginning in this area.