This trailer was used within Namco's booth during E3 1997 to demonstrate Pac-Man Ghost Zone, which would have been Pac-Man's brand new game for the Playstation at the time.
However, development of the game was not going well, and Namco president Masaya Nakamura was particularly displeased with the project upon seeing it in action. It got to a point where the majority of the development team was fired, and the little of it that remained started over from scratch. This new project would become Pac-Man World, which released in 1999.
This demo was recently shared with Hidden Palace and other parts of the public in 2022 by William Anderson, who worked at Namco on Ghost Zone. It was actually stored on a disk that could be played on Playstation models.