From an action perspective, those shots look very in-game. The character close-ups are most likely cutscenes. Cutscenes are realtime in this game. IIRC, some special-case rendering is done for characters in cutscenes, however, versus their in-game rendering (to get them ready for their close-up, so to speak).
It is amazing that the realtime cutscenes and character models therein look better than that close-up CG face-shot of Nariko from 2005. Stylistically, obviously a lot has changed... beit through that or otherwise, it looks a lot better now.
edit - this comparison, stolen from GAF, tells the tale:
I remember how that was always the caveat..that this was always the bit in the E305 demo that was questionable because it was purely CG, but they've ended up far, far exceeding it.
(Well, the other bit often called out was the army scene, but that brief glimpse in the admittedly crappy youtube video suggests great things there too..)