Cutting from different camera angles and subjects is core to our video experience. A great way to understand how this works is to watch TV with the volume off. Notice how often the cuts happen during a scene. Note how they set up the scene, emphasize facial expressions, and set up a rhythmic pace. Interstate 76, with its primitive graphics, was able to really capture the feel of a 1970s action film by mimicking their editing style.
Some big differences exist between traditional video post and post for game delivery.
First, traditional video is made up of tall, rectangular pixels. Computers use square ones. Second, each traditional video frame is made of two unique picture fields interlaced into one frame, with all the even lines capturing a moment in time a fraction of a second different from the odd lines. Because RGB computer monitors are much better than analog televisions, games can use film-like color saturation and contrast. The drawback to the high-quality images produced by computer monitors is that a lot of subtle noise that would go unnoticed on a television is often readily apparent on the monitor.