NEC's 32-bit console was in development for over 4 years, a long time for a console to be in R&D in those days.
that picture is realtime polygon graphics generated by the Project Tetsujin board aka IronMan
aka Hudson 32-bit board from 1992, basicly the early PC-FX when it was going to have some level of 3D polygon capabilities. Hudson & NEC did away with / scrapped the polygon capabilities, and instead improved the FMV playback quality, for the final system.
see this thread for more detailed info on the changes the PC-FX went though during its development.