It's official: this movie is in-game footage, but it is ran on an "advanced superconsole." The creators of the Killzone 2 footage have confirmed this to be in-game footage, end of story. It is not CGI art. Most media enthusiasts expect the PS3 to play Killzone 2 at 50-75% of this performance. In other words, it will look just as good, but the framerate will probably be 30-45 FPS instead of the blazing 60 FPS in the movie. This isn't bullshit either -- the actual game developers explained this in an E3 interview.
Some predict that by the time the PS3 debuts the developers will be able to harness enough power out of the PS3 to make it look exactly like that video, but right now they're still working on it.
-Lasereth
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"A Darwinian attacks his theory, seeking to find flaws. An ID believer defends his theory, seeking to conceal flaws." -Roger Ebert
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