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Adobe Flash 11 will feature a proper 3D rendering engine and API

The next version of Flash, amidst growing competition from emerging 3D-in-the-browser technologies WebGL and O3D, will feature support for 3D graphics.

But don't get too excited just yet -- we'll probably have to wait until October and the Adobe MAX 2010 conference before we find out more. There, on October 27th, a Flash player engineer will give a talk about "the next-generation 3D API coming in a future version of Flash Player." How exciting is that?!

It's an interesting move, and I feel that it's just in time too. WebGL and O3D might be exciting propositions in themselves, but they don't enjoy almost-100% saturation -- not yet at least. Every existing Web game maker uses Flash -- and you can be guaranteed that they'd rather code 3D games and applications for a platform they already intimately know.

It sure looks like Adobe isn't going to give up on Flash without a fight. First peer-to-peer transfers with 10.1, and now proper 3D. Assuming the 3D performance is good enough, we could see some very interesting FPS and MMORPG Flash games next year.
Flash CS4 Professional Bible

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