A physics engine is a game feature that takes care of players' motion, animations, ragdoll ... etc.
Grand Theft Auto IV uses the Euphoria engine as its proprietary physics engine. Other games have different engines. Most physics engines are all based on the same concept and basically copy off one another.
All the appealing (animations, distinct death scenes each time, and enter/exit car ... etc) glitz we see in games are from physics engines. Consider the older titles in the GTA series. Predefined falling and jumping animations have undergone the power of modern physics engines and turned into the sleek stunts in the new gaming generation.
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