Originally Posted by DArtagnan
Not if it was true HD - but it almost never is.
They do this because they're targeting machines with low specs, and they need the cutscenes to look right. They don't do it because the engine couldn't render it real-time on screen.
So, even if The Witcher 2 used recorded realtime rendering (which it doesn't) - it would still mean the engine is capable of doing what you're seeing.