I think games like Metal Gear Solid, Vagrant Story, and Xenosaga are prime examples of what can be achieved with the in-game engine.
heheh, i was just kidding a little bit there
As long as the transfer data rate is fast enough for streaming off disc any format with HD rez, will do. I agree.
But i think it\'s a bussiness thing as well ; sometimes devteams don\'t have time themselves to do all cutscenes so they will have to hire animation studios. I can imagine that the dev studio is not eager to hand out a game engine to a third party animation studio ; so it might be a bit more cost effective to just give those guys the base models and let them tweak and customize those models for full Cgi.