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AD has come across an article at GamesRadar titled "Tracking the Sordid History of Interactive Movies". By 'interactive movie', they mean 'film shoot' - forgetting that the former label was originally created to refer to games like Wing Commander II and System Shock. Oddly, Wing Commander (the series that popularized both items) is touched only only briefly:
With or without controversy, interactive movies were doomed from the outset, and big-budget titles like Wing Commander III stuttered under the weight of their own ambition. Robert Paulsen explains: “It wasn’t so much that the genre failed, but that technology failed the genre. The ideas were just too far ahead of the technology. The budgets for these games got bigger but the end result was always the same - CDs couldn’t hold the information needed to give the games good video quality and true interactivity.”
The general conclusion seems to be that FMV is down but not out - a few modern attempts could bring it back. Command & Conquer 3 is proof of that! You can read the entire article here.

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Here's one for England: the Wing Commander movie will air in HD this Friday (July 20th) on SkyMovies HD1. It will be shown twice, at 12:00 and 18:05 local time. Their page for the film is here. They've come to an odd - and unique - conclusion about Wing Commander:

As science-fiction goes, Wing Commander is decidedly un-cool, yet ironically, probably the most realistic depiction of future space travel... with a little rust around the edges.
Realistic?! Let's push them off the flight deck! Nevertheless, when it comes to visuals the movie shines - I wish I could see it in High Definition!

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