What geologic features could this video game environment be modeled from, and how do they form?
Looking at the landscape, it almost appears to be a highland, with steep valleys carved by a misty river - which suggests possible waterfalls.  I am reminded of Victoria Falls, on the border of Zimbabwe and Zambia (part of the landscape pictured below)



Image source

The geological processes that formed these features is summarised in the webpage The Geology of Victoria Falls as a series of tectonic and erosional activity over an ancient basaltic bedrock, forming a series of near parallel gorges (shown below and from the webpage linked before).