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Originally Posted by DeathsHand
Yeah so far the only people I've heard saying it's not real-time are just random people speculating based on the fact that it just looked too damn good to be true...
as I said in the Nintendo Press Conference thread, even if it does graphically end up looking that good in game, that demo's scripting (or scripted-quality non-scripting  ) did seem to aim a bit high...
If they could have that many characters running around with their own fun AI doing a bunch of unique things, taking advantage of different situations, etc, that'd be quite amazing... But at this, that to me seems less believable to me than the game's graphics...
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They did that to demonstrate such power from the Cell. The Cell's power was emphasized in it's power to calculate A.I.... So the showing of Killzone showed each unique character on the canvas doing something differently.
Developers of Killzone confirmed it REAL-TIME, and IGN too..