This could be it, the point at which graphics get so close to real life so consistently that they take a sideline to plot, gameplay, and art direction. Might as well just be one console next gen cause they're all going to look perfect.
How is that Ray tracing? You might as well of said how is this gas oxygen? Maybe looking at the other higher quality vids will help you with whatever problem you're having. They even cycle through the rendering layers that make up a completed ray-trace scene.
Ray tracing is a generic term used to render images including things like shadows, reflections, refractions and even caustics. There is very little information about the quality of ray-tracing which gets more expensive with depth increases and scene complexity. However, it's about time they're able to do good enough ray-tracing realtime.
Ray tracing is not a 'generic term', and has a very specific definition. Ray tracing is where rays of light are shot out from the camera (so far, no different to GPU rendering conceptually), and then as each ray hits an object, more rays are shot towards light sources and other rays are shot to simulate reflections, etc.
Ray tracing is not 'just high quality' as tir implies, nor is it just any rendering type which is capable of reflections, refractions, or caustics, all of which can be trivially done with DX10 shaders, well short of true ray tracing. Photorealistic ray-tracing of non-trivial scenes takes hours or even days on standard CPUs, so I don't think even GPUs can bridge that gulf quite yet.
Now I don't actually have a clue whether the graphics demonstrated in these videos is true raytracing or simply an incremental improvement in traditional GPU techniques, but all of you should do some research before posting such strong statements...