This idea for a game using sprites and backgrounds that are pictures of clay figures just suddenly came to me.

Has anything like this ever been done? It seems like it would take a lot of work and real talent among both artists and programmers to get it looking real. If it hasn't been done, what do you think of the idea?

The Neverhood is probably the most famous example.

Platypus is a claymation SHMUP, indie developed IIRC.

I've also seen someone doing it locally (Israel) her name is Hadas Noam. You can check out her work at http://craftyarcade.com/

ClayFighter and ClayFighter 63? did this, as the name hints ;)