I don't see why it has to be in-engine though. It'd only have to be a scripted animation without needing too much system resources or big development expenditures.
There's lots of ways of doing it. I would love a scary interior animation, but I doubt they will go for it.
The most elegant and least 'controversial' way would be a fade-out from the captain's view followed by a fade-in to an external view of the sub+debri sinking to the bottom, possibly getting crushed by pressure on its way down.
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There are only forty people in the world and five of them are hamburgers.
-Don Van Vliet (aka Captain Beefheart)
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