and they made sure that the footage looked just as blurry and low res as the actual game running on a PS2 to make it fit seamlessly

That is until you play the game 20 years later on an emulator and you go from lovely upscaled gameplay to sub-DVD quality videos with tons of in-built aliasing

spoiler

For a non-emulator example, fire up the DMC HD Collection and check out most of the cutscenes in DMC3, they look like absolute ass next to the few cutscenes that weren't pre-recorded