While computer graphics, animation and games get more 'real', far more interesting to me are the cases where the virtual bleeds into the real.
The best recent example of this was "Modern Japanese Classic" this wire-frame sculpture of a Subaru Impreza by artist Benedict Radcliffe. It was recently parked outside a gallery in Mayfair which was showing more work by Radcliffe inside.
The wireframe car, sits impassively, unexplained, a ghost from the virtual. It marks a point of slippage between the world and a mirror world. It certainly confused the hell out of local parking wardens, who issued it with a number of tickets.
This slippage between the real and the virtual - sometimes called Hybrid reality - is also the work of artist Aram Bartholl. In the installation Speed, he faithfully recreated the track marker arrow from the computer game Need for Speed in Bremen, Germany.
Then of course, there is the emergence of real world Google map pins. There's no limit to where this could end.