That looks more like the graphics to be expected in-game in Halo 3.

However I doubt you will find the top picture is really in-game. It might be an in-game movie, using part of the game engine.

In Halo1 and Halo2 cut-scenes never looked better or worse than gameplay, they look the same. Bungie has been doing this since the beginning as they strongly believe that changing the gfx for a cut scene would pull you out of the experience and remind you that you are playing a game. This ideology is confirmed for Halo3. What you see here is what you get, Love it or Leave it.

I believe those graphics are in-game. Even if it is a cut-scene that means nothing since Bungie uses the same graphics for cut-scenes that they use for gameplay. Now when it compares to Gears I have to go with Halo since the colors will be more vibrant. Gears colors look very dull but it fits within the context of the game.

In-game screenshot confirmed. Updated the initial post.

 I think that response was Bungie's version of a polite "f*** you" to every naysayer out there.

These guys absolutely defined great graphics on the original Xbox. Why do so many people think they've suddenly lost their mojo?

BTW, if those mountains and clouds are any indication of the type of backgrounds we'll be seeing in H3, hot damn, it just might beat out Gears in the graphics department.

 People saying Gears will look better than Halo is like people saying Killzone will be the best game ever.

So little has been seen of both games that its foolish to deal in absolutes.

The graphics look pretty damn good too me.

Graphics look really cool, and very possible for Xbox 360 hardware.

I don't understand how poeple thought this was not gameplay :P

Master Chief's model has a somewhat high polygon count, and a lot of parallax, normal and bump maping, things that the 360 can do with ease.

Also, using FMV's is sooo 32-bit, nobody uses it nowada-... er... forget it

Wait for actual gameplay footage before judging is all I'm saying. One zoomed in screenshot of Master chief for a cutscene doesn't do it for me.

It's not a cut-scene, friend!!!!

They detached from FPS cam to free roam to take the screenshot pic.

If the graphics look as nice as the first pic, I think it beats Gears. Come on, you gotta admit ...!!! lol