I believe that this is the Crytek CryEngine 3, and I’m guessing it was on display at GDC (Game Developer’s Conference) 2011. I say guessing, because it would be the perfect place to spotlight it.
Now, you will notice that characters can be captured in realtime, and you will see how awesome all of the backgrounds look as well. Subtleties like lighting and aperture have been adjusted to make things look quite cool and incredibly realistic.
The end result is nothing short of beautiful, and I would imagine that we will see the CryEngine 3 graphics in the newest version of Crysis, which tends to raise the bar when it comes to graphics.
You realize that eventually these graphics will get so good that these video game systems will have to be updated in order to play something as classy as this. Perhaps they’ll finally update the Nintendo Wii for High Definition television at last.