A Cutscene is a non-interactive cinematic sequence in a video game that advances the narrative, introduces characters, provides context, or transitions between gameplay segments. Unlike the main gameplay where the player has control, cutscenes are authored, directed, and presented as linear video content that the player watches rather than participates in.

Cutscenes can be rendered in real-time using the game engine with in-game character models and environments, or they can be pre-rendered at higher quality as video files that play back during specific story moments. Pre-rendered cutscenes allow for more cinematic visual fidelity, complex effects, and higher production values than the game engine could produce during live gameplay, but they require significant storage space and cannot respond dynamically to player choices. Real-time cutscenes, on the other hand, can reflect the player's customization choices and adapt to branching narrative paths, but are limited by the engine's rendering capabilities.

AI video generation is beginning to play a role in cutscene production, particularly for indie developers and smaller studios that need cinematic sequences but lack the resources for traditional animation or motion capture pipelines. By generating character performances, camera movements, and environmental footage through AI tools, developers can produce narrative-driven cutscenes at a fraction of the traditional cost and time investment.