You must see this trailer.

[cojones]

It looks very much like pre-rendered footage. To avoid confusion that's an animation video, an actual video file a'la *.avi, *.mp4 then played back by the console as if it were a DVD film. Not actually generated real time by the ps3.

That said, if it is, I might just buy the ps3 though.

[Ryder]

Yes demos rock. Anyway from the gameplay I have seen so far, it is the best looking game to date. The lighting in this game is uncomparable to anything out there. Even Crysis.

[Monkey Business]

It's confirmed that there will not be any CGI based cutscene’s in the game. Everything you see will be rendered in real time.

Killzone 2 has no CGI-Animation, everything is real time - Talk Playstation

[peteyglad]

The trailer does look good. I was getting this anyway I have not played the 1st one yet, but have played Liberation on the PSP so I am somewhat knowledgable on the series.

[Ryder]

It's confirmed that there will not be any CGI based cutscene’s in the game. Everything you see will be rendered in real time.

Killzone 2 has no CGI-Animation, everything is real time - Talk Playstation

Was about to post that. Nice to see that this trailer is in fact real time.

[The Juggler]

It's a real time rendered recorded cut scene... NOT ingame footage... read the rest of the article... I hope that the game is great but please guys your getting way too excited the video footage is just that no matter how it was/is produced... it is not the game with you in control it is a cut scene... generated now or recorded no matter this is not 'in-game-in-control' footage it is cutscene.

Ok just went and hunted down some actual in-game-in-control footage... yep it looks great but no-way no-how is this trailer any representation of the real in-game experience... and to be honest from what I have seen the graphics are not that advanced to any of the big named games already out.
I am glad you guys are excited by this game but I think some will be disappointed if they continue to believe the cut-scene is what to expect. The article I read also said the same thing... cg cutscene is not representative of actual game play.

Now don't get me wrong here gents... not poo pooing your game at all just wanting to make sure that you are not all taken for a ride on the hype bus as obviously some of you might be already.... I am overjoyed that the ps3 has a good exciting title on the way as it does need a great game as it has been very slim pickings of late... and as you all know I adore competition as we all gain from it as gamers.