Well it looks like the footage we have been seeing is gameplay.
Looks like a 3rd Person Shooter. Basically a FPS with a behind the shoulder view so you can duck and do other things you cannot do in a FPS easily. Seems like a very nice Squad based shooter.
Btw, the graphics are good, but after seeing more you can see the "limitations" so to speak. The asphalt texture is excellent but you can see a break in it here or there. Same goes when the tank is blown up. It does not look bad, but it does not have the INSANE particle effects/smoke/flash. Another example is a shadow on a treet has a clear "break" to it (not a soft shadow it appears... makes me wonder if it is using precomputer shadows or since the R500 is supposed to do stencils well if it is doing that). The other thing I noticed was an HDR effect when he looked up. It goes from being bright to less bright and slowly stuff became clear and not washed out from light. Grass also looks very titled/boring at the end when zoomed in across the courtyard. Simiarly when they are hiding behind the concrete wall taking pot shots the concrete is really square and boring, would not expect that in CGI.
Basically this game looks like it could be a high end PC DX9 game. Next gen graphics and some SWEET looking gameplay. I am not trying to say this looks bad, because it looks GREAT. But after seeing more footage it seems more believable. Definately up there with the best 2 or 3 live demoes shown. To compare to a current DX9 title being released in a month, BF2, this looks like a good year ahead in graphical advancement.
I wonder if the footage was captured on a 6800? Maybe the PC version?