For example in forza, the game plays engine sounds based on how much we press the button. Are there different sequences of clips ? If yes how do they blend so well ? Or are they synthesized dynamically ?
There are so many parts to it as well - when the gear shifts, when you suddenly slow down at high speed, when you suddenly accelerate from stop. They all seem very realistic.
Most older games will have 2-3 engine loops that they will blend between and pitch accordingly, however Forza 5 specifically was the first in the series to use granular synthesis which is a much more modern approach.
These will have a series of sound files including all the different parts of the engine, exhaust, turbo, etc. Then the software slices these files into tons of pieces in real-time and plays the slices based on the players inputs.