Most videogame cutscenes (well, for AAA games; I'm going to ignore the wide, worthy, and growing ecosystem of "I had an idea and made it in Unity with purchased assets") use bespoke model and texture assets, motion-capture human animation, and voice acting.

None of that is what an Xtranormal auto-puppet show is about.

Motion capture in bigger budget games only started to become common around the Xbox 360/PS3 generation. Go back to prior generations and it was a lot of "2 models facing each other and their mouths wiggle up and down while audio files play"

Pretty much exactly what you see in that video.