So why did Intel fake the demo at the press event? With presentations like these, things can change at the last minute, and not everyone coordinates well-enough. It could have been that Mooly Eden thought he was really going to be playing the game. Skeptics might disagree, but I find it very hard to believe that an Intel executive would knowing try to pull one over on the press like this, especially when it's been proven that real gameplay is in fact possible.
It doesn't surprise me. When a technological presentation is dependent on 3rd-party software -- and especially games, since we are all well aware that's exactly the industry that produces the least quality software on the planet -- a company like Intel won't take unwanted risks.
For all purposes, that video could have been recorded on the machine being tested. But outside the event, for all sorts of embarrassing things can happen when you trust a game to showcase your technology in real-time. Neither is Codemasters a company renowned for bug free products.
Internally, had I been in Intel's shoes I'd go berserk at who was responsible for producing such presentation without ensuring a minimum level of security. Why was someone else allowed to touch the computer, why wasn't the presentation advertised upfront as a video demo. The game market is so full of arseholes (that's us gamers and some of the press) that I can understand some flak could arise. But Intel doesn't really need to prove anyone anything. Only the ignorant and malformed genes skeptic would want to believe that the video they are seeing was not recorded on the new processor Intel says it was.
Companies like Intel really need to rise up a level above the jungle market that is the games market. If they level with the monkeys they too will speak monkey language.