ND has always been pretty clear about their cinematics, that they're rendered on consoles but with higher quality settings than the actual ingame stuff. I'm sure there's a Sony PR push not to talk about whether UC4 is realtime or not but they're not lying about it at all. It is in-engine, it's just - quite probably - not at realtime settings. Does not matter much, the quality of the assets, animation and effects are obviously very high nonetheless.