The company will demonstrate the new display at the at a trade show this week and plans to have a commercially applications available by late 2006.
To create realistic 3D images, Toshiba said it developed proprietary software that simultaneously projects 10 or more views of an object.
The displays have small lenses in front of each pixel that control the direction of light emission and project different images to the viewers left and right eyes, creating a sort of visual stereo.
This resulting imaging system mimics light beams as they would be reflected off of a real object, rather than a visual representation of the object, and produces 3D images that appear to stand out from the surface of the display.
The software also is capable of mapping GC images and approximating the way light beams would reflect off of the real-world objects upon which the images are based.
The 3D effect is visible from angles of up to 30 degrees from the center of the screen and at distances of more than 14 inches.
Toshiba already has designed circuitry and middleware to support fast playback of 3D images using a standard graphics card.
The company plans applications for video arcades, engineering software and education.