I am awed by the graphic capabilities that exist now. This is a cute two minute film, but the description makes it even more incredible to me:
Created by Epic Games, Kite is a short film about a boy as he pursues his stray kite through a diverse and beautifully realized landscape. Everything you see is generated in real time by Unreal Engine 4 at 30fps. This demo showcases Unreal Engine large world features, photo reconstruction and procedural asset placement.
Update: If you want more behind-the-scenes technical information, I found the fantastic talk below. I won’t claim to understand all of it — I still struggle with the basics of SL recording (I won’t call my efforts machinima!) — but still, wow.