I would guess that the speakers are behind the white wainscot, those look to be acoustic fabric fronts to the left and right of the screen and centered below the screen. Most likely bookshelf speaker hidden. But to answer your question, you can get in wall and in ceiling speakers that sound as good as any floor standing speaker, just depends on your budget. Consider James Loudspeaker and Triad Speakers for some of the best in-wall speakers.

I agree with Davis AV.

The thing about inwall/ceiling speakers is that you get a lot more in terms of the materials that go into the sound. Box speakers have a lot of extra costs involved in constructing the box, weight of shipping the box, volume that they take up in the shipping container to import them, etc.

I've made this guide to get people started on comparing speakers under the veil of the brand name: http://blog.inwallstore.com/how-to-compare-speakers/

I hope it helps.

Actually all the speakers are installed behind the Acoustic Transparent Filmscreen and the room does sound amazing. This entire room was wood so there was no place to put the speakers without making them a focal point on the wall.

Its rare anyone wants to see their speakers anymore so manufacturers have done a very good job of upgrading the sound quality of their in wall speakers. These comes with sealed back boxes made with the speaker to achieve the exact sound quality the manufacturer desires. All the surround speakers are in ceiling. The only speaker in the room is the 10" subwoofer in the back right corner. Even though its in the room and not concealed for décor, I prefer the sound quality of a true subwoofer in the room vs. an in wall subwoofer.