At the IDF, Intel's Pat Gelsinger showed a short video that shows two scenes: One real life Africa scene and then after a smooth blending a Far Cry 2 scene. German website PCGH.de has this video on their page.
What's interesting: The video was part of a presentation that deals with Visual Computing and Raytracing. So while there is no Raytracing at all with Far Cry 2 (it's tradional rasterizing), Intel seems to be confident that this will happen soon.
eh i'm not sure if it was my laptop but the video looked more like a slideshow until far cry 2 was shown but even then it was not spectacular.
Raytracing isn't coming the PC gaming or any kind of gaming for a long, long time because the performance side of this kind of rendering absolutely sucks, and in the PC gaming world its about performance first followed by effects.
Nobody upgrade their cpu and vid card to play games in DX10, they upgrade so they can play DX10 games at 60 fps.