Turns out speech has consequences.

Shamelessly stolen from neogaf:

PN03 remake on this engine please!

UE3 was designed for real-time lighting but got downgraded to baked lighting.

I AM TUROK!

A lot more info about the game's tech (in japanese) in this excellent interview to the Sonic Team by Zenji Nishikawa:

game.watch.impress.co.jp/docs/series/...

In Mario Sunshine, shadows are skewed against the sun but they're also projected vertically so when you jump they stay in place. They're approximated with spheres intersecting the ground.

The beyond part is this beautiful realtime DX9 HDR lighting demo from 2004:

web.archive.org/web/20081216...

Both games also render particles at a lower resolution, somthing that would become standard the following generation.

At 10:00 you can see shadows CAST on the dust particles. This game is WAY ahead of its time.