GPUs have implemented tessellation shaders for a long time now, and they can be used to implement what you describe. The Xbox 360 already had them, but it was t

GPUs have implemented tessellation shaders for a long time now, and they can be used to implement what you describe. The Xbox 360 already had them, but it was too slow at the time so not used much. If I'm not mistaken, later generations have used them extensively.