The demo is mostly a re-creation of a sequence from Eternal Darkness, which is a bit disappointing. It looks good and all (particularly the environments and the lighting) but I would've preferred to see something I haven't already seen before.

For some reason this is making me look forward to The Witcher 3.

I could be excited for this only if Nintendo can somehow oversee this whole production.

Also, I thought this looked eerily familiar.

The guy looks constantly freaked out because of the art style, it's great!

I think it looks great. They probably re-did an older sequence because they might not want to give anything away, or maybe the story isn't down yet. I see it as a showcase of what the game will look and play like, not really what the story will be.

If I recall correctly, the earliest demos of Eternal Darkness featured a playable knight-templar character that wasn't in the final game. This is probably more proof of concept than anything final, but I wouldn't be surprised if some elements of this demo were to make it into the finished game.

Assuming it is finished.

Is this the demo that was essentially produced with Activision's money?