He played Killer Instinct in the original. It looks like it could be the same game (it looks like there might be two characters and a status bar there). Then again, maybe it's Sabrewulf or something more recent like that. His tail looks like that because of whatever shader they're using. The effect is sort of neat for his head, but looks like total crap for his tail. They should use the regular fur shader for that. Maybe it looks better in motion.