The color bleeding is simply the increased bloom. It does NOT bounce upwards onto other objects in the scene.
This is what GI would look like (very approximate, painted in Photoshop):
No GI
Faked GI
And in actuality, the non-cutscene image has more "indirect light" in the form of the blue tinge from the sky. This is usually called a skylight. You can see the skylight here:
This skylighting is probably part of their IBL probe system.
If you want to try to understand IBL, think of a grid of mirror balls that perfectly reflect the environment. These are called "probes". They take a snapshot of the lighting in the area. If you take it at high resolution and don't blur it, it can be used for reflections. If you take a lower resolution and blur it a lot (called convolution) you're left with the general colors from the reflection.
Here are some links to help you understand:
Wolfire Games (the uniform ambient vs IBL and the blurred cubemap image)
Ambient Cubemaps (UE4)
Ambient Cubemap Off
Ambient Cubemap On
You can see by the way it lights up the undersides of the trees that it's very much like GI. But it's not.
CryEngine Environment Probes
Black Ambient (No IBL)
IBL
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Anyway, I can assure you there is no GI in The Witcher 3, or at least your images do not demonstrate GI. They have a dynamic IBL system and that is it. Just think of IBL as a super approximate GI. IBL gets the general lighting of an area and applies that to all the surfaces. GI actually bounces lighting between surfaces.
So it goes like this: Uniform Ambient > Directional Ambient (one color per XYZ direction) > IBL > Dynamic IBL (using probes) > GI
Thank you for your explanation of IBL. I will use dynamic IBL term. in my future observation in video! ( sorry for misunderstanding guys )
So you say that IBL technique can affect Geralt's hair and body, dynamicly, regarding dynamic sunlight and environment?
Because you will see that real color bleeding is in game ( cut scene ). Geralt's white hair is receiving some orange tinting from
orange building facade, and floor also. ( my video observation will come hopefully tomorow ) Also color bleeding doesn't have
anything with bloom imho. Please Google "color bleeding"
I'm working with Cinema4D, Vray and Octane, unfortunately i'm not so familiar with terminology of game engine.
So maybe different terminology makes harder to understand each other
Anyway, so they took down IBL from real game, man i hate Geralt's flat face, especially at night.
Thank you once again