A cutscene is a term used in pre-current-generation gaming to describe a pre-rendered movie within a video game.
Cutscenes are far less likely to be used on current-gen consoles as most systems use an NIS (a non-interactive sequence). An NIS differs from a cutscene in that it is rendered in real-time by the game engine.
Bob: "Man did you see that cutscene in Need For Speed Undercover where Chase Lane is bending down, over the table? Wow!"
Joe: "That ain't no cutscene!"