RayScale was a startup based out of the University of Utah and has built a hybrid renderer that merges the two techniques - all of the reflections in the image they showed were indeed done with ray tracing alone.  The engine was not up to real-time frame rates on the images but they said they have spent the last two weeks working on adding features, not performance, and that it should be "no problem" to get his running in real-time.


We are obviously very early into the news cycle and will be trying to get more information on what NVIDIA plans to do with this new acquisition.  I can tell you that you won't see these techniques in games for some time - both the software and hardware need time to mature and be optimized; but it is coming.