Carl Sagan once said that "Extraordinary claims require extraordinary evidence" .
This company claims that their technology will revolutionize the gaming industry, but so far I have seen little evidende of this. The video looks nice, but is not good enough proof for me.
The technology they are building seems to be based on Voxels (http://en.wikipedia.org/wiki/Voxel). But that technology was abandoned years ago, and for good reasons.
I agree skepticism is warranted, and yes from Euclideon's own admission they claim it to be a "polygon to voxel conversion". They seemed to have garnered enough faith by http://www.euclideon.com/pr_9_may_11.html from the Australian Government.
If they pull this off, these guys are going to be extremely rich...