Another issue is that the only kind of game where you can conceivable use a truly raytrace denvironment are limited to the likes of Dragon's Lair: something with an extremely scripted, linear storyline, with little deviations. It's very, very difficult to create a game like that that's actually fun and that people want to play for more than a couple of minutes.
Gameplay that makes you come back for more is more important than having photo-realism.
Gameplay that makes you come back for more is more important than having photo-realism.