Space Engineers is based on a proprietary graphics engine developed in-house by Keen Software. The graphics engine is known as VRage 2.0. VRAGE 2.0 is built upon its predecessor used in Miner Wars 2081.
The engine focuses on volumetric objects and structures which are composed from cube-like modules and fitted together on a grid (similar in some aspects to Minecraft). However, there is a more sophisticated and realistic take on objects and how they act when force is applied to them. Terrain is voxel-based and fully destructible and deformable. First- and third-person cameras are supported.