With all this talk of Wii 2 and consoles holding PC graphics and development back, it's easy to forget the fact we're stuck with the Xbox 360 and PS3 for another three years. Just because they're getting a little long in the tooth, though, doesn't make them slouches in the graphics department.

This is a technical demonstration put together by tri-Ace, the Japanese development studio best known for its Star Ocean role-playing games. Normally renowned for its gorgeous cinematics, this clip shows they're no slouches when it comes to making real-time graphics sing, either.

You can read the specifics of it all here, but to surmise, tri-Ace claim this is all done in real-time on an engine that runs on the Xbox 360 and PS3, with not a second's worth of pre-rendered or otherwise doctored footage.

Remember, though, this is a custom-built technical demonstration. In the real world, a game's memory has to be filled with, well, a game and not just a fancy showreel.

Still, if you want to know what the PS3 and Xbox 360 are still capable of - and could feasibly pull of for real-time, in-engine cutscenes - check out the video above.

[thanks KingKellogg the Waffle Haggler!]