I've recently been shown a demo reel of the Unreal Engine 4 (clicky).
At the very end, while running around in the game world, the demonstrator changes some of the source code in Visual Studio. While he continues to run around the code is recompiled, and suddenly the changes take effect in the game world - without even restarting the simulation.
This struck me as pretty amazing (more so than the fancy graphics
It's far beyond me to try and make anything like this but I'm fascinated - does anyone have an inkling how it works?