Dynamic Terrain Deformation
Is a means of editing the landscape of a game world based on a player’s actions in game, simulating real-world physical reactions rather than operating within a static/unchanging environment.
This is a heavily sought after feature that has garnered attention in a number of recent game releases, most notably the vehicle-based game Spintires (published by Oovee, released June 2014).
SGT will be developing a dynamic terrain deformation plugin for Unreal Engine 4 that will allow non-technical users to implement terrain deformation mechanics via Blueprint, the highest-level scripting language in UE4.
This will be primarily used for vehicle-based game objects in the initial implementation, with plans to extend its usage for any sort of physics interaction with terrain including projectile collision/explosions and “sandbox”-style manipulation.
Let us know here if this is something you and your team would be interested in.
Thank you.
*This image is taken from Spintires (the gold standard we are shooting for)
There’s quite a lot of interest in this from what I’ve seen, and essentially no solutions other than rolling your own.
Good to hear.
Thank you for the info
very impressive a must have in my project.
Yes please. Will need a way for explosives to create landscape deformations in my planned game.
If straightforward to use will be a definate buy from me.
Regards
Slinky
Yes I would be interested 
A huge yes here as well
Would certainly be interested in this.
UPDATE**
Skunkwerks Game Tools : Dynamic Terrain Deformation Plugin**
We are making progress with DTM tool. Latest test look promising. More info to come in Q2.
http://skunkwerkskinetic.com/tools
Looks very promising, keep up! 
it would be great for my little RTS game, to smooth terrain on building placement, and for digging/filling moats around castle walls.
If easy to use will be a definate buy here. I would be looking for explosive deformation to create adhoc foxhole cover. Is this planned?
Regards
Slinky
UPDATE
Skunkwerks Game Tools : Dynamic Terrain Deformation Plugin
We have it working!
This includes tire tracks at variable depths with variable terrain (water, mud, sand.) & creating craters / fox holes from explosions (ordinance, bombs etc.)
We are sending a proof of concept to Unreal to apply for a dev grant in order to make it a functional plug in for all.
Would you be able to put the deformation on the ground as a decal or static mesh for like arch viz scenes where you want tire tracks in the snow?
For the record, yes I would be very interested in this, especially for craters and crashes of airplanes/spaceships.
I agree with everyone else, but just to be sure: can one dig tunnels? Or if not, can one at least create holes in the terrain? (just like when painting with a hole material)
When will this be released ?
When will this be released?
I’m definitely interested in this!
Yes same here 