Real-time raytracing has often been called the pinnacle of computer rendering for games but only recently has it been getting traction in the field. A German student, and now Intel employee, has been working on raytraced versions of the Quake 3 and Quake 4 game engines for years and is now using the power of Intel's development teams to push the technology further. With antialiasing implemented and anisotropic filtering close behind, they speculate that within two years the hardware will exist on the desktop to make 'game quality' raytracing graphics a reality.

http://www.pcper.com/article.php?aid=455

Quake 4 Ray Traced