Most videogame cutscenes (well, for AAA games; I'm going to ignore the wide, worthy, and growing ecosystem of "I had an idea and made it in Unity with purchased assets") use bespoke model and texture assets, motion-capture human animation, and voice acting.
None of that is what an Xtranormal auto-puppet show is about.
Motion capture in bigger budget games only started to become common around the Xbox 360/PS3 generation. Go back to prior generations and it was a lot of "2 models facing each other and their mouths wiggle up and down while audio files play"
The difference being that someone actually had to record said audiofiles, and animate the mouths wiggling. The "slop"-ness is defined by the inputs, not the outputs.
None of that is what an Xtranormal auto-puppet show is about.