[Quote Removed by Moderator according to the FINAL FANTASY XIV FORUM Guidelines.]
Funny because that quite evidently applies to you, since you don't even know basic effects like bump and normal mapping. Or you compare the graphics of games belonging to completely different genres (and with completely different specs that have to be met by the engine).
There are several elements in that cutscene that show clearly that it's prerendered. The effects are mismatched with the models, and there isn't a PC, at the moment, that could fully render that scene in real time, with that polycount, level of detail and depth of field, at that resolution and with that framerate.
Cutscenes can be made and rendered in many way, while there's an engine base in that cutscene (otherwise it wouldn't be a tech demo), there are so many levels of prerendering that it isn't even funny.