Philips provides autostereoscopic three-dimensional display systems that will bring the next leap in visual experience, adding true depth to video systems. We identified three challenges specifically for 3D image processing: 1) bandwidth and complexity of 3D images, 2) conversion of 2D to 3D content, and 3) object-based image/depth processing. We discuss these challenges and our solutions via several examples. In conclusion, the solutions have enabled the market introduction of several professional 3D products, and progress is made rapidly towards consumer 3DTV.