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The best-looking video game ever made is DICE's original Mirror's Edge released in 2008.
It featured highly photorealistic light calculations, yet was still able to achieve an extremely beautiful stylized look.
The ray-traced lighting was pregenerated with middleware called Beast Lighting, which allowed them to tune the reflection and color intensity of the light.
Never let anyone from NVidia tell you that raytracing HAS to look bad.
Modern graphics cannot reach this fidelity because of a lack of Art Direction, not because you need a more powerful GPU.

Unfortunately, the creator Illuminate Labs was acquired by Autodesk in 2010 and Beast Lighting hasn't been utilized to the same degree since. What happened to DICE is common knowledge.
@WandererUber using raytracing in production and translating it to baked lighting in retail is so self-evidently logical, you really see how these companies will destroy everything good in the world to make a profit and use you as beta-testers for inferior realtime RT.
If your game has static environments, you produce using RT and ship with baked lighting ONLY, no exception!

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