https://secure.wikimedia.org/wikiped...er_graphics%29
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In computer graphics, a sprite (also known by other names; see Synonyms below) is a two-dimensional image or animation that is integrated into a larger scene.
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AO and AE characters were animated with sprites rather than 3D polygonal models because given the technology of the time it would allow the characters to look more detailed. Every single frame of animation of every single interactive object and special effect in the game is one sprite.