One of the biggest challenges is the 3D animation space. Even more, if the animation is generated in an automated mode, with own programming mode behind, and full control over the light, camera and materials.
Ray tracing is one old-fashioned way to create own 3D world.
20 seconds animated content generated with 400 pictures is given here.
We use windows native video format AVI with no compression, but after a conversion into 4 other video formats some loses in quality are present depending of the size of the box where the video is played.
We can build animated products for mobile environment. The same animation is also converted into 3gp video format. The example is on this link (3gp).
