Unreal Tournament 3 makes use of morph targets, and that's coming on five years old ;) It does look like morph targets to me, it doesn't look like bones. I could be wrong though, of course.
Well, surely we are here to discuss game art ;) Also I don't think you can import Morph Targets and the like into game engines, which is why I mentioned it. I think they aren't exportable from their respective programs. It pretty much has to be done with bones, or some kind of baked vertex animation, at least that has been…