can it do cutscenes?

Can the unity engine create in-game cutscenes? Like pre-rendered video and it just plays, or real-time rendered scenes.

If you have unity-pro, you can create a plane with a video texture that plays, or you can script/animate an in-game cutscene.

Video texture documentation

Making In-Engine Cutscenes (the 3D platformer tutorial has info on this toward the end, it tells you how to script camera changes, and make animations for the different game objects)

Hope that helped!

You can use Unity's Animation Editor to do everything needed for a cutscene without scripting*. It let's you animate positions, rotations, and other variables(such as light settings i.e. range, color, intensity etc.) Then, after you play your cutscene, you can give control back to the user and let them play the game itself.

I've heard that these guys have made something called the Unity Cutscene Editor. Says it can do cutscenes, but hey, I've only heard of it. I've never tried it or anything. All I know is that it's no included in the Pro or Non-Pro Edition, and I don't think it's free either (I'm not really sure about this, though).

We have developed a CutScene editor for the Unity Asset Store.
Check it out at the Unity Asset Store.
Or check out the online manual and tutorials.