This may be "current gen" graphics, but this is current gen graphics for single player pc games. This blows away anything that is currently out now for an MMO. Watch the class videos on the game's website and you will realize that the trailer was filmed mostly using the in-game engine to render.
As a side note, there's no such thing as "next generation", unless you're talking about Star Trek. That's just PR talk.
En Masse Debuts, Will Unveil TERA at GDC 2010
En Masse Entertainment officially announced its formation today, and this game publisher is comprised of veterans from some companies you may recognize: Blizzard, Microsoft, Electronic Arts, ArenaNet, and NCsoft. CEO Dr. Jae-Heon Yang was the CTO for NCsoft until 2007, while COO Patrick Wyatt was a creator of the Warcraft and Starcraft franchises, as well as the co-founder of ArenaNet.
En Masse's first official title is TERA, a next-generation MMO developed by Korean company Bluehole Studio. The game is scheduled to launch for PC in Korea this year, and En Masse is currently adapting it for Western audiences in North America and Europe for an early 2011 release. En Masse will unveil TERA next month in San Francisco at the 2010 Game Developers Conference.
TERA is a gorgeous fantasy MMO with a tactical combat system that will allow players to have a direct impact on the world through the game's political system. Players can choose from six races, such as High Elves and the Panda-like Popori, and eight classes. Check out the official TERA trailer after the jump and keep an eye on ZAM.com for more information on the game as it's revealed.