Depixelizing Pixel Art
research.microsoft.com
research.microsoft.com
Some of the previous discussion isn't great (squabbling about dupes, not being able to download the pdf). A common comment was "hasn't this been done before". Many existing tools output higher-res bitmaps, this tool outputs vector images. They did run comparisons to a variety of algorithms, including potrace, which also generates vectors.
Things involving novel presentations of algorithms and well presented 'undry' academic papers seem to do very well in this regard..
http://research.microsoft.com/en-us/um/people/kopf/pixelart/...
Given that he suggested Minecraft terrains, I opined on how Minecraft would look with such an algorithm applied.
Yeah, I'm just learning about this stuff, so I cannot offer a detailed explanation whatever :/
Additionally, a lot of old videogame machines have special built-in routines to place sprites over a background. So if you'd apply the vectorizing algorithm separately for the sprite drawing routine--by not just processing the entire screen after it's rendered, but doing the elements separately--you'd at least not run into the problem that lines from foreground sprites meld with background details.