In engine footage?

I still don't know what that means.  Does it mean that this is in game footage and the game will actually look like this?  Does it mean its pre-rendered footage that used the game engine to make it?  I suspect its the latter, and I'm fine with that, but if its pre-rendered footage, don't pretend that is something special.  I doubt that Bards Tale 4 is going to look like this in game.  I hope I'm wrong though, because the game looks rad.  Take a look for yourself below