It's called "prerendered backgrounds vs. ingame rendering". XIII was full of that as well.
Seems everything including the character is prerendered in the top picture.
It's been confirmed that there have been a mix of CG and real-time in the trailer. A lot of it is CG. For the screens you posted, the top is CG and bottom is real-time.
I figured, but I wanted to believe! The bottom pic looks kind of like ass and more what I would imagine a PS3-up-port to look like.