I just wondered how to create a 3D effect similar to Pokemon White/Black? It seems to be not polygon based, but created just with sprites. If the perspective changes the sprites stay sharp and don't get blurred. How can I archive this?

Source: https://www.youtube.com/watch?v=fZEPUPYOnRc&feature=youtube_gdata_player

Edit: Wow, two downvotes because I used a video instead of screenshots? Don't get me wrong, I thank you, because you want to help me, but the 3D effect can be better understand in motion. Anyway, here is a screenshot: http://wearearcade.com/wp-content/uploads/2011/03/pokemon-black-white-starter-town.jpg

So, if this is a hardware limitation, how can I archive this o na different hardware, e.g. a HTML5 game? Thank you.