It's "in-engine" trailer, at least it's what I understand by "pre-rendered on the U5 game engine"
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Honestly, that's just largely marketing talk.
It sounds impressive but all it really means is that it was generated and rendered beforehand instead of being generated, calculated and rendered in real time like it would be during gameplay.
It looks amazing but it's not at all indicative of what the game will look like in practice because real time rendering is just so much more demanding. It used to be trailers had to be rendered using different tools than the actual game engine because game engines couldn't do it. It's great that they can do it using game engines these days but it really isn't indicative of anything.
Don't get me wrong, I'm sure it will look amazing. UE5 is a graphical powerhouse and CDPR has, since TW2, always pushed for great graphics but it won't look like that once we start playing.
Hence why I said I'm reserving any judgement until I see an actual gameplay video.


