Okay, so that we are all on the same page, I will enlighten you about my little outrage yesterday!
First, Epic is currently working to get Lumen running at 60 FPS on the consoles.
- Improved performance optimizations in High scalability mode with the goal of achieving 60 fps on consoles
This high scalability mode will be certainly the mode that is chosed most by players and RTX/RDNA2 PC players with console level performance (2070 Super and below) as I'm sure many of you know 60 fps is the prefered way to play.
Previously, I thought that mode would be using Hardware Raytracing as well, specifically optimized for a tighter frame budget. This makes sense, if you're running UE5 and turn scalability to high, it will still make use of Hardware Raytracing.
However, now Epic released this Siggraph presentation about Lumen:
http://advances.realtimerendering.com/s2022/SIGGRAPH2022-Advances-Lumen-Wright et al.pdf
On Page 133 they actually state which path they are going to use for that high scalability mode in the future:
Projects that use Lumen have to choose which tracing method they’re going to use. Software Ray Tracing is the best choice for projects that need the absolute fastest tracing possible, like 60 frames per second on next generation consoles. Projects that have lots of overlapping meshes built using kitbashing should also use Software Ray Tracing, which was the case in our tech demos ‘Lumen in the land of Nanite’ and the ‘Valley of the Ancients’. Projects should use Hardware Ray Tracing if they need the absolute top quality possible, like Architectural Visualization. Projects should also use Hardware Ray Tracing if they need mirror reflections, like in ‘The Matrix Awakens’, or skinned meshes affecting the indirect lighting in a significant way
As you can see, they are planning to use Software Raytracing for that high scalability mode, which renders HW-RT useless for the vast majority of gamers, as I've stated above, most gamers will prefer 60 fps over 30.
Of course the 30 fps "Epic" mode is still going to use HW-RT as demonstrated by the Matrix Demo, but lets be frank that is not the mode players are going to use if a 60 FPS mode is available. That is why the RT hardware in many upcoming games (if not most, as so many developers switched to UE5 and got rid of their own engines because of Lumen and Nanite) will be idling and not only on consoles, PCs too as many people only have RTX/RDNA2 GPUs with below 2070 Super level of performance so they are going to use high scalability which disables HW-RT.
Why is this a problem? Because it leaves super powerful hardware unused. The goal of an engine should be to squeeze every piece of silicon out of a GPU, that is why Nintendo games on older hardware still look great. Avatar: Frontiers of Pandora will actually do this, they are using a Software approach for older hardware and then use HW-RT faster performance (yes, this means their SW-RT solution will be triangle based so I am curious how this will run without HW-RT). Metro Exodus Enhanced Edition makes full usw of Hardware Raytracing, their incredible RTGI solution runs at 60 fps on consoles. Why can't Epic? Going back to UE4, they were always the ones destroying RT performance bad for little benefits, especially compared to other solutions like in Control, Metro, Marvel and many more.
If you really read behind the lines, Epic is really not that keen about HW-Raytracing in general. They handle it as way for better lighting and reflections, specifically for Archiv projects, but it's clear they want you to use the software path for actual games. The Matrix Demo is the only demo making use of HW-RT, while there's two already for Software RT "Lumen in the Land of Nanite + Valley of the Ancients". And HW-RT is disabled by default EVEN on compatible hardware. It seems like their HW-RT solution is bottlenecked hard as soon as scenes have a ton of overlapping meshes (which is basically any video game with rocks, foliage etc)
To be honest, I wouldn't be bothered so much by this if Epic didn't have such a monopoly right now. But nearly every game developers switches to UE5 (even CDPR) so that's the way it's going to be for future games.