Eiji Aonuma: “I'm sure all of you saw the video of the new Legend of Zelda game at this point. One thing that I'd like to point out to everybody is that none of that is CG. It's all done in real-time and running on the [game] engine. That movie was actually created by somebody who took a version of the game, played it, videotaped and then cut the pieces together to make the movie.”
That's quite a feat considering the awe-inspiring cinematography that it contains. If you haven't yet seen the new Zelda video, don't just sit there... Click.