They are prerendered backgrounds.. but they are starting to move into the full 3d world... i read the site.. it says something about how the animation or something like that will make these prerendered backgrounds look 3d.(RDX from IGNPS2 boards)
The backgrounds are slowly moving to the 3d part, and yes the PS2 does have this kind of power XBox fanboys. You can\'t believe can\'t you.