The video isn't showing any game engine. It is displaying some random characters rigged with Biped, linked to motion-capture sequences that are included in 3dsmax' Character Studio. I recognize them because I've used them myself to stress-test my own 3dmodels.

I will say that their 2d artist is remarkably skilled. I preferred his drawings over this silly video.

This is a welcome move though. And if they can make their own 3d engine rival that of M2TW, I'd be very glad. I wish them all the best.