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[Rösti]

Is this in game? How does one do that?

EDIT: Oh, is it Minecraft? Ok that makes more sense.

Whether it's actually Minecraft or not I can't tell from the image (it's too small). However, something like that has been done using the Machinima tool: http://www.youtube.com/watch?v=nzTYvEBsghc

It cannot be done natively though as far as I know. The console variable controlling draw distance (called farclip in World of Warcraft) currently goes only to 1300. I don't know if it's the same on the PTR servers (which patch 5.4 is available for testing on right now) though, but you have been able to do some crazy things there (such as in one build of patch 4.2, you could adjust draw distance to a negative value which caused some very weird effects).

 

[Thagomizer]

Probably any PC game.

That and Halo 3's draw distance is probably based around places you can't even visit yet since it's not open world.

Quite a lot of Halo backgrounds are actual geometry that you can explore extensively if you can get around the invisible walls, which is rather easy to do in the first three. The playable space is often a rather small area of the map.