Even if it really was ray tracing, there is NO WAY that this video demonstrated real-time ray tracing in that quality.
There is currently no hardware accelerated card available nor planned which can render ray tracing in real-time and multi-core CPU power is still years away from doing this in the same quality as modern games (Crysis, Cod4, Moha, Call Of Juarez).
Somehow I get the feeling that this whole "ray tracing" hype is completely misunderstood. Some people believe "ray tracing" equals "100% realistic and natural graphics" which is clearly not the case. Scanline renderes are actually more capable of displaying photorealistic scenes than ray tracers.
Ray tracers only do one thing really good: "to trace rays" which means it excels in performing realistic reflection and mirror effects. Nothing else, not even realistic shadows.
and yes, the second part of that video does look entirely non ray traced.
This comment was edited on Apr 7, 15:32.