Scenario game play. It would also be cool to have real people spawn in the single player to fight against you. Who needs AI? Just put real players in the game.

I think that is because the trailer took footage from within the developing tools of the game.  

The game has been demoed in real time in the Jimmy Fallon show, and you can see after the disastrous gameplay (in a funny way) that was shown, that is real time.

yeah I was happy to see Fallon play it (I think he's the only one that's gotten to touch DS4 other than Sony guys) because it puts to bed any CG rumors given GG's history of showing off what a console can do.  There were some press members after the Sony conference that were thinking that KZ:SF demo was CG which seemed ridiculous because the gameplay seemed to be pretty spontaneous to me.