Ratchet and Clank for PS3

[Ikari Warrior]

With today's level of graphics, do games even use FMV anymore? If so, why?

Many games today use FMV of scenes made using the in-game engine converted to video. Gears of War does this, and the demo of Ratchet does it as well. It allows you to have cutscenes and not have to load the game engine to play them. Sometimes (like Gears) they are really noticeable if the are encoded in a low resolution