This video is, supposedly, a demo of PC raytracing tech running on an i7 and Radeon 5870, in DirectX 11. In other words, it's amazing visuals running on a PC that you might actually already own.
It was created by PC modder Hayssam Keilany, who does work on tweaks for games like Skyrim and GTAIV.
Of note is that it appears to be running in real-time, as he moves the camera and objects around with a mouse. Also of note is that, despite being a tech demo, it's not a dungeon or starship. Which is nice.