I am involved in demolitions in the army as part of my job, having blown a number of things up in my current 10 year career i can say that the explosions to me at least do not look so realistic. Im no torpedo manufacturer nor am i a game designer but a torpedo would not cause the amount of catastrophic inferno's that every ship displays when hit, unless of course it was carrying ammunition/explosives/petrolium.
The problem i have is the whole length of a ship errupting into a blazing inferno instantly upon a torpedo hit, looking more like a synchronised fireworks event rather than a real explosion. For a ship to completely burn along its whole length is feasible, given time for the fire to spread.
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