Difference between bleeding edge VG and pre rendered graphics?

In the “old days”, they were totally different. Pixar was pixar, and mario was mario, and the process for displaying them were worlds apart.
With ever improving modern 3D, the line is blurring. Although prerendered by virtue of raw processing power will always use more polies and physics iterations, but will video games soon be rendered essentially the same way only with less detail?
To give an example, sprites that didn’t need oversampling(anti-aliasing) have given way to vidoe cards that do it on the fly, the same as in blender or 3Dmax.
Shadows are mixed between images placed by hand and truly rendered.
Will we soon have enough processing power for extensive raytraced effects? Or do we already and I’m just stuck on starcraft and battlefront 1?

What yall think?

question answered:

“DIY”-Ratracer co-processor card, give the guys some R&D money and they’ll make you one that runs at 30fps.