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He means that it would take a long time for an animator to animate the number of animations used in U2. In other words they found a way of making models that have a way of generating animations without having an animator create the animation.

I'm not sure how that would work specifically. The way I see it as the comparison between sprites and 3d models. You can draw every single frame in order to show the character move, or you can use a 3d model with a skeleton that you can program to move in a certain way.