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http://www.gamasutra.com/features/20061228/intel_01.shtml

Nice read.

The only problem with using Google Earth as any kind of game is the immersion factor.
Unless you are after a litterally photo-realistic game, then you'd be struggling just to make the maps look as if they fit.

If, on the other hand, Google offers some form of a data based output where you can gather heightmaps, building locations, etc, then you could build your own look and feel from the actual data

hence what dem files are good for.
http://www.vterrain.org/Misc/usgs_data.html

Actually I considered using Google Earth when it came out for something like an Xevious clone. Considering you can rotate the map as well then it would be a sweet foundation for a cool shoot 'em up. I was thinking of a cross between Xevious and Asteroids with multiplayer online. Then the map itself would have minimal interaction with the player (just place several bases at certain GPS locations) so it wouldn't be a problem. Couldn't work out how to use Google Earth, and hi-res images (although nice to look at in a demo I wrote) are just too unwieldy without doing something like Google Earth yourself (streaming off the net). You got to admit it would be neat; Xevious online war games over your house

That and I also thought a car game would be good if you could also grab the road data from Google Earth.

Cheers