Without this simulated effect each frame shows a perfect instant in time (analogous to a camera with an infinitely fast shutter), with zero motion blur. This is why a video game with a frame rate of 25-30 frames per second will seem staggered, while natural motion filmed at the same frame rate appears rather more continuous. Many modern video games feature motion blur, especially vehicle simulation games.
There are two main methods used in video games to achieve motion blur: cheaper full-screen effects, which typically only take camera movement (and sometimes how fast the camera is moving in 3-D Space to create a radial blur) into mind, and more "selective" or "per-object" motion blur, which typically uses a shader to create a velocity buffer to mark motion intensity for a motion blurring effect to be applied to or uses a shader to perform geometry extrusion.
When an animal's eye is in motion, the image will suffer from motion blur, resulting in an inability to resolve details. To cope with this, humans generally alternate between saccades (quick eye movements) and fixation (focusing on a single point). Saccadic masking makes motion blur during a saccade invisible. Similarly, smooth pursuit allows the eye to track a target in rapid motion, eliminating motion blur of that target instead of the scene.
The motion blur due to camera movement can be broken down into four distinct types of motion:
Rotation, so that the image sweeps across the sensor. This is dependent on focal length - will be strongest with telephoto or longer focal lengths, and less noticeable with short or wide-angle lenses.
Rotation about the lens axis, so that the image twists on the sensor. This is unaffected by focal length (but can still be reduced by a faster shutter speed).
Sideways or vertical sliding motion. For the same subject magnification, this is unaffected by focal length. Hence if a wide-angle lens is used close to the subject, to give the same framing as a telephoto lens far from the subject, the amount of blur is the same.
Back and forth motion towards or away from the subject. Only really important at macro distances, not a problem for a distant subject with a tele-lens, but could be a problem for close ups, regardless of focal length.
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