[quotemsg=20809776,0,2569720]Wasn't AMD showing demos of Real-Time ray-tracing since 2006? Also no longer the holy grail in 3D rendering. Bouncing light takes too long and isn't too accurate going through certain materials. Now its bouncing sending a ray from the pixel until it bounces a certain amount or leaves the scene.[/quotemsg]
Everyone's been demoing the tech for awhile. Last year (CES or maybe GDC) Imagination was demoing a 15W chip that was trouncing a GTX980 (IIRC) in rendering a scene using their ray tracing technology. The imagination chip was rendering the scene nearly instantly while the 980 took 5-10 seconds. Still, not many have been integrating the tech into engines or GPUs. It is possible to ray trace on modern cards, but not in real time. We still haven't a clue how good the technology is going to be. Unless we are to believe the leading image is a screen grab from a live demo.
link to imagination article(I did not remember some details correctly):
http://www.tomshardware.com/news/powervr-ray-tracing-console-graphics,31411.html