Very impressive animation and in the demo it looks like it’s fairly inexpensive to animate. Basically the girl on the monitor is interactive. They aim to license it across the world for all forms of expression that can take advantage of 2D art being rendered in 3D, not just VNs. I think it looks much better than the tech they use in PSP games & on (ugly) Robotics Notes. Uptake on eroge will probably be very limited. (*Unless they can capture a market on TABLETS!! lol i doubt it)
[youtube http://www.youtube.com/watch?v=YrLnF7CQ8Ac]Also see: The Future of Eroge post. Windmill using a similar technology. Animated 2D had always been a gimmick reserved for console releases. The PC market had not really cared for it. So this is a big venture for Windmill.
While it does look like very great blend of 2D and 3D movements, the interactivity will most likely be reserved for things like smartphones, which I’m very iffy about playing anything on. lol
At the very least, the visuals of this technology would improve anime VNs on the PSP like OreImo. I’m sure that if the VN market for the PC has any interest in it in the future, they would easily incorporate this technology if they wanted to, as I’m pretty sure the PC is capable of these visuals despite the technology being described as being compatible for “portable consoles and phones.”