I have heard many people say this is far in our future still for games. But After hearing the latest news and seeing a video of it, I think this is in our very near future.
Geomerics, licensor of game engine lighting middleware, has joined Epic Games' Integrated Partners Program for advanced lighting implementation into UE3.
http://www.geomerics.com/index.php?page=lightingIf any of you are familiar with Radiosity Lighting and the implications this has on future games, you will be very interested in the link above. The fact that Epic has taken them in, fortifies their claim on their technology. I'm sure it will take a top end video card to run such a feature, but it is for damn sure one of the coolest advancements to date in graphical technology.
EDIT: I guess to explain for those who don't know, There is no true real-time radiosity lighting in games today. The lighting that you see in the games now.. there is radiosity, but it is "baked" into the levels when you compile them in editors(Much like Half-Life 2). With real-time on the other hand, all lighting is completely dynamic. Which, until recently was thought to be next to impossible with our current consumer graphics cards.(Even Tim Sweeny, the master coder behind UE3 said that!)

Crysis, watch out.