I guess i'm not sure what's going on, what makes this so special?
I watched the demo and it looks like you can embed a video or image into another image that appears when zooming in far enough. But there is still the problem that the image you are zooming into needs to be HUGE, taking up massive amounts of space on a disc or hard drive. I can take a super high res photo on my camera and after enough zooming in like seen in the video, there is very noticeable pixelation.
If this was to run in a game, either it would only be used in small parts or mini game type things since the space requirement would be enormous, or they don't use it all. I don't see how this would effect graphics in anyway either unless they are talking about swapping out textures as you move closer and closer to objects (which can already be done on Wii anyways).
Maybe there is something i'm missing, but right now embedding video into an image only accessible by zooming in seems really unneeded and gimmicky.
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