Resident Evil Degeneration is a CGI movie, from the trailer we would believe that is to be set 7 years from Raccoon City (in other words, 7 years after Resident Evil 2, but before Resident Evil 3).
It has a whole new cast, and a whole new story line. Which I think is probably a good thing, as the last two Resident Evils were pretty meh.
I am personally very excited about this movie. I think with a fresh start (new crew and story) they have the opportunity to make something wonderful.
The only down side I see so far is that Sony owns the Resident Evil movie license. This means that when it’s released to the public, it may vey well be a Blu-ray exclusive.