The 2005 Demo
In the demo, Phil Harrison shows the crowd a small bathtub with some rubber ducks in it. He uses these to demonstrate the real-time water ripples and dynamics. He then uses two toy pirate ships to demonstrate cloth dynamics. To show the Cell's processing power, he adds a huge amount of ducks to the tub (all reacting as they would in real-life, due to the advanced physics engine). Phil comments dryly that "this is only possible with the use of LOD technology, for those of you that don't know, LOD stands for "Lots of Ducks"
Read more about this topic: Ducks Demo