After reading that IGN link, and the comments in the IGN forum, I really dont know if its pre rendered or real time.
Not going to lose any sleep over it. Will just look up at the screen at Walmart or where ever the actual unit is on display. Will read reviews from trusted sources a month or so after it comes out, because gaming reviewers have a tendency to succumb to hype for something they've been anticipating for a while. I'm sure we all remember glowing previews/reviews for certain products, only to read the same reviewers a month or so later casually say "Of course (product) was somewhat of a letdown," as if they'd told us that the first time out.
Folks, we're not going to solve any of the big questions for months, it's all just speculation. My speculation? If you like console gaming and if the 360/PS3 debut for sub-$500, you're going to get a heck of a console with impressive power and capabilities. Both will have some great titles released. It won't be like you get it home to find out it can only do Pong. If you're only going to get one and you're going to pre-order it, then fine, one might be the better buy than the other and you might get burned (probably just singed). Best bet? Just look at the damn thing with your own eyes!