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2d has it's market, but as stated, mostly on machines incapable of supporting 3d visuals. As a marketing niche: 3d is alive and well, but how many 2d games do you see being created on technologically superior machines (ie the PC). Yes, 2d has a niche, but it exists not because of artistic liberty, rather technical limitation. What happens when the technical restrictions are lifted from portable devices (as is already being evidenced). What happens when these devices inevitably become powerfull enough to render 3d visuals? Personally, I think it is a shame, 2d still holds stylistic and artistic promise that is tapped very unoften nowadays. If portables can now play the same games that desktop machines could 10 years ago, think of what desktop machines could do with 2d now. But as stated, among gamers 3d has become an accepted standard so development of a 2d game on a 3d enabled system is a economically unsafe manuver. Both systems of visuals have a time and place in my opinion, I just wish that 2d wasn't bound only to handheld devices.
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