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specialized in visual novels, which 3D rendered in real time. It turns out that real time rendering in visual novels is harder to do well than you might think. The ability to free the camera to look at the girls from different angles got old really fast and beyond that it had a tendency to just look worse than pre-rendered or drawn graphics. Movements sounds cool, but it ended up being just awful with unnatural shaking rather than real movements. It turns out that that while it's hard to make a visual novel based on still images, it's way harder to leave rendering to the end user. So far no visual novel has pulled off making it look attractive.
Didn't help that Teatime's custom engine was just plain bad from a technical point of view. It was full of weird issues like map loading speed being limited by fps so turning on V-Sync meant loading a new room would take 5 minutes instead of 20 seconds. What surprises me the most about them going bankrupt isn't that it happened, but that they survived for 12 years.
So yeah real time rendered visual novels sounds awesome, but if you encounter one there is a significant risk that you want to go back to pre-rendered. In fact I'm not aware of any visual novel with real time rendering, which actually works properly other than E-mote, which uses the GPU to make 2D sprite characters very animated with high degrees of freedom.
TL;DR: the headmaster should stick to pre-rendered images and none of us needs GPU power to play it. Even if animation/videos appear to be low frame rate, it's still way better than real time rendering.