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I think I've seen it quite a bit on android titles, I guess its a way of keeping frame rates up on low performance hardware especially when you are pushing that hardware with a more complicated game engine. Looks much better than when a solid object appears from nowhere. I think I have seen it on more powerful hardware too and on pc games when running in low detail mode etc.

Love my old Saturn but you can see it struggling sometimes to try and match the ps1 for many 3d games although the tables are turned when it comes to 2D games.