Some good words from the guys at Games Foundry.
The Highlighting System was very easy to integrate into Folk Tale. We were able to customize our own shaders very quickly to support highlighting by following the documentation provided. The results look excellent and were exactly what we needed. We had tried previous solutions that scale up geometry in the shader, but they have visual issues with nested objects that you don’t get with a stencil buffer solution.
You can sign up for the Folk Tale beta at www.gamesfoundry.com/beta.