You know, just to be the smarta** here I'd like to say yes, this is gameplay for you can clearly see that at least one individual is imputing commands to make the game operate and considering the hardware this game is running on, it's very unlikely a bot can achieve some of what is happening onscreen with both characters at once.
And to the negative "graphical" remarks from the OP, I suggest trying to stop hammering it down as fact because it's just the opposite, it's opinion. As someone whose taken interest in most Naruto games on all platforms, it can safely be said that this is not the worst to come out of Naruto games "graphically", it's not even bad compared to some of the second party exclusives that came out on 360 at the time.
In fact, it's not even graphical issue that many of you are fretting over, it's visual aesthetic that's turning some of you off, the art design. And even the one or two technical studders I could pick up on in the video aren't even enough to break the game in my eyes just from watching, I really don't notice anything that could potentially damn this game into the trash bin.
Now gameplay-wise I won't say anything considering this is one of the few Naruto games I never got my hands on but looking at several online reviews here I think you may be the (vocal) minority here when I see that this game was (and still is) well received be both critics and gamers alike.
