Jason Kincaid recently blogged on Techcrunch about City Space, a photo-realistic 3-D virtual world.

Trust me when I tell you that you need to check this post out. The graphics are so rich and immersive they’re almost lickable.

Kincaid has included a video in his post which shows a massive virtual city filled with towering skyscrapers, parks, user-customized apartments and houses, public meeting places, subways, and everything else you might expect in a metropolitan area, all beautifully rendered by the OTOY engine. The game also features impressive real time lighting, reflection, and weather effects that rival those seen in detailed 3D games (and even some movies).

This is undoubtedly the next frontier in gaming.