Back in 2012 this was featured in DigInfo
Live2D, developed by Cybernoids, is the world's first drawing technology to enable 3D rendering of 2D images. This technology supports a variety of portable consoles and smartphones, and Live2D is already being utilized for games that take advantage of the unique characteristics of hand drawn artwork.
Live2D - Interactive 3D animation of 2D images
At present, the technology progressed this far
Imagine those 2d waifus artwork in glorious 3d/virtual reality. lols
http://www.live2d.com/en/showcase
Live2D, developed by Cybernoids, is the world's first drawing technology to enable 3D rendering of 2D images. This technology supports a variety of portable consoles and smartphones, and Live2D is already being utilized for games that take advantage of the unique characteristics of hand drawn artwork.
Live2D - Interactive 3D animation of 2D images
At present, the technology progressed this far
Live2D Euclid animates 2D illustrations in rich 3D environmentsTrue 2D graphics. 360° realtime expression
Live2D Cubism, the current generation of Live2D technology, allows artists to create a model from single character illustration drawn from a given angle to animate within the range of 30~40° sideways. Live2D Euclid eliminates the range limitation by seamlessly integrating multiple illustrations drawn from various angles while each of which being deformed independently. A Live2D Euclid model can be rendered realtime in a 3D space, supporting not only modern CG animation but also interactive game development. It may further support game engines like Unity and Unreal Engine as well as virtual reality platforms like Oculus Rift. This fundamental and versatile technology will bring rich 2D content across various genres and media dominant today.
Imagine those 2d waifus artwork in glorious 3d/virtual reality. lols
List of games that are using Live2D (old tech)
http://www.live2d.com/en/showcase