CG means computer graghics and yes those movies in batween levels are CG. A lot of movies like Jurasic Park, Star Wars etc nowadays are made with some kind of CG element in them where as before it was stop motion phatagraphy and regular animation. Which is very time consuming and expensive. In the Oddworld movies everything is going to be a computer graghic. There won't be real actors but there will be real people doing the voices and maybe even some of the movements of characters which later would be edited with a CG model over them.
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