It is a screenshot. Can't really showcase gameplay in one. Plus part of the next-gen selling point will be the visuals (given the presentation overhaul focus)
That's just a cut scene thats why it looks so good, the game always looks like shit on custom 3 anyway.
The last 2 years the game has improved over the previous year. This picture clearly shows they'll do it again. DYNAMIC CLOTH TECHNOLOGY [MENTION=8078]SeaRed Bull[/MENTION]