Apparently the images here are from Project Gotham Racing 3 for the new upcoming XBox, and yes, I thought they were photos too but they are in game screenshots.
Insane is all that can be said:
http://www.threedy.com/site/forum/showthread.php?p=358102 (http://www.threedy.com/site/forum/showthread.php?p=358102)
Man that is nothing! There has since been loads more screens released of in game graphics .. BAWWW!! ALSO! To top that off, that game was developed on the single core dev kit. Which means it still isn't using the full power of the 360. However the final Dev Kits were shipped about 2 weeks ago to the developers which have all 3 cores, so that PGR3 is only the start of what we can expect. Apparently the new Resident Evil 5 is going to be the one to look out for in terms of graphics. Then Halo 3 in terms of game play, AI, and use of the physics engine.
Good lord, that's insane! (*does double take*)