Technology that transforms digital images into 3D models will be unveiled at a conference on Thursday.

Microsoft's Photosynth takes collections of images, analyses them for similarities, and then displays them in a reconstructed 3D space. The system, to be previewed at a computer graphics meeting in Boston, will allow users to walk or fly through a scene to see photos from any angle.

Microsoft says Photosynth should be available for use later this year. Richard Szeliski, principal researcher at Microsoft Research who developed the technology with Noah Snavely and Steven Seitz, of the University of Washington, said: "The system builds a 3D model just from a raw collection of photographs."

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News source: BBC News | Technology

I knew it'd come to something like this.
I've always thought the best graphics could get would be like a user controlled movie. where it's video quality but still a game. and this is the first step

You can find a demo of it in action here.