Quantic Dreams developed Heavy Rain and it utilized its amazing animation and visuals to tell the tale of a killer and the people involved in the case with a certain flair and emotion. The way the characters looked and acted was something that's never been done and while the game was met with mixed emotions due to the quicktime nature of the product (Cyril enjoyed it immensely), it did show off some killer graphics for the PlayStation 3.
Below is the next tech demo from Quantic Dreams showing how far they've come since Heavy Rain. The seven minute video shows you the birth of Kara, an Android that becomes sentient. Sure, it's not original, but take a look at the technology that Quantic Dreams has developed and how life like the facial animations look as well as how natural looking the body moves around.
How much of this will go into their next game remains to be seen, but for a tech demo running on a PlayStation 3, it sure is impressive.
Eurogamer has a lot more on the project and it's a pretty good read. One quote that stands out from the article though:
"Kara's the very first thing we've done with this brand new engine, so it's not optimized - it's got 50% of the features that we have right now, as Kara was done a year ago"
If that's just 50% of what they've achieved running this on a PlayStation 3 in real time, I'd love to see what they have as of right now.