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SvennoJ said:

Or you can render the actual character into the pre-rendered scene. Nothing new. Rendering a few high quality characters with a pre-stored light map into a simplified 3D model to cast the correct shadows won't take many resources. Should still leave plenty time to load the next game section.

In engine cut scenes are no guarantee either. I've seen plenty co-op experiences where the co-op partner simply disappears during in engine cut scenes. A bit more jarring than a different color outfit. And even when the correct equipment is used it often ends up sticking through scenery or other characters. Dragon age: origins had some 'hilarious' cut scenes that way, couldn't be more immersion breaking.

You are talking about FF7,8,9 RE1,2,3 tech....PSX era rendering. There is a reason why the moved away from that. The aren't just doing away with pre-rendered "recorded" cutscenes for immersion sake, its also cause of size limitations... those high quality sand textures take up space you know? 

Anyways its all good either way, all this tsuff doesn't actually improve load times anyways... they just conceal them. I still think the PS4 should have been made with a PCIE SSD lol.