Thomas A. Puazza who is a Intel Fellow for IGP graphics has confirmed that the Ray tracing is one of the ultimate goals for real time computer graphics. This won't happen overnight, it will definitely take some time, but even the head of Intel integrated realizes that this is the direction that the industry has to go.
Justin, the CTO of Intel, also spoke about Raytracing and Daniel Pohl the Quake 4 Raytracing guy that we met back at IDF shares the same opinion that Raytracing is somewhere where he sees the future of computer graphics.
In raytracing you are tracing the rays of light from the viewers eye back to the scene and this is still the best algorithm known for getting the most realistic scenes and all Hollywood blockbusters are using is, since it has been a mainstay in off line 3D graphics for years.
It will be a few more years until it comes to a real time gaming.