Bonus content: here’s one of the old “dae le epic simulation” promises from Cloud (Clown ) Imperium, a worthy copypasta from years back:

A ballistic round passes through the ship’s shield, which scrubs off some of its kinetic energy but not enough as the round’s velocity was high as was its mass as it was an armor piercing round. It manages to penetrate the armor and strikes an internal component, say a power relay node (something else we are working on as part of the pipe system refactor). The power node takes damage giving it a chance to “misfire” while in use. A few minutes later the node does misfire, blowing its fuse and resulting in it catching fire. The crew of the ship doesn’t realize a fire has broken out in one of the side corridors, as they are busily concentrating on fighting the ships attacking them. The fire starts to spread along flammable surfaces, and as the fire starts to engulf other components they also catch fire. The engineer on the bridge of the ship sees his console flash red giving him a warning that several components have failed and looking at his ships schematic he sees a fire has broken out below decks. The engineer decides to seal the bulkhead doors on the corridor to contain the fire but the doors have no power as the power node is out! He comms one of his crew mates to leave his turret and grab an extinguisher and put out the blaze which is slowly creeping towards the power plant room. Fire reaching a ship’s power plant or it’s ammo stores are two sure fire ways for your ship to go boom. With the physical damage system ships will no longer just explode when their hit points reach zero, they’ll explode because something inside them went critical and exploded (due to damage or heat), which then damages everything else. Outside of that damage will affect the ability of the ship to function or it’s structural integrity so they also could become a lifeless hulk as much as they could go up in a flash of light. When the crew member gets to the corridor where the fire has broken out is has already consumed a huge amount of oxygen in that “room” (the corridor) and has released noxious gasses, so the crew member can’t breathe and quickly retreats to put on a fire resistant suit and helmet. The engineer in desperation manages to reroute power away from the destroyed node through a secondary node restoring power to enough of the bulkhead doors to allow him to contain the fire. Noticing that there is an external airlock in the sealed off area he opens the airlock, venting the oxygen in the sealed off corridors and rooms to the vacuum of space, depriving the fire of the ability to burn, putting most of it out. By this time the crew member is suitably dressed and can extinguish the fire that made it past the bulkhead door before it can grow again. The engineer then reseals the airlock and allows the life support system to replenish the air in the vented part of the ship. Once done the engineer opens up the bulkhead door allowing the crewmember in with a replacement fuse for the power node, restoring power to that section of the ship, then returns to his turret. It’s been a close call but the ship is still alive and in the fight!

What I describe will be possible once we have finished and deployed the systems we’re working on.