This is a tech demo for the new engine Square-Enix wants to use for the future Final Fantasy games. It features an arabian-like town and music where some priest is summoning a dragon of some sorts and gets attacked by a bunch of rebels holding AK-47s. There's a very cool Final-Fantasy-like fight between lightning-wielding mages and the rebels that ends up with a pretty girl escaping from it.
If the rest of the games will look like this, I'm sure it's gonna keep being the best JRPG franchise out there. I've always said it, Square-Enix knows its stuff when it comes to Final Fantasy and good graphics.