This is a quick snippet of what we can expect from next gen consoles and high spec PCs of the future.
The extremely high quality graphics match the extremely high price tag of the new GeForce graphics cards capable of rendering real time ray tracing and real time reflections.
As you can see from the GTA V example above, the power of the graphics card really does bring the game close to real life quality. Improved ambient occlusion, radiosity and raytracing are all parts of what makes this possible.
Games that will be designed specifically to run on these types of cards will of course be much better. I for one cannot wait to see these games!