Video games have evolved at an impressive rate since the days of Pong and Pac-man. Video game graphics made the jump into 3D and more recently HD, and photorealism is a goal of many. Impressive graphics engines like Unreal and FOX can produce screenshots that are almost indistinguishable from real life, but no actual video game has truly captured that look yet, and it could be awhile before one does.
Tim Sweeney is the co-founder of Epic Games (the company that makes the impressive Unreal Engine), and he recently gave a speech about virtual reality and augmented reality. These are two more innovations that attempt to blur the lines between reality and a virtual world, but Sweeney says that it will take another two decades before developers will actually be able to utilize these tools to create truly realistic video games. In the meantime, Sweeney and the rest of the Epic team will keep improving the Unreal engine and pushing closer towards that goal.
Source: VR Focus