Along with its rival Disney, Dreamworks Animation has been one of the strongest supporters of 3D video technologies in their entire movie industry.

Recently the movie industry has seen the format's popularity wane as ticket sales have dipped significantly, which has caused executives like Disney CEO Bob Iger and Dreamworks CEO Jeffrey Katzenberg to speak out in defense of the video format.

Katzenberg's comments were made during an interview with The Hollywood Reporter, and according to the high-profile CEO, the dip in 3D interest is "heartbreaking."

During the interview with The Hollywood Reporter Katzenberg theorizes the movie industry has let the public down by releasing movies that haven't been as entertaining as past titles. "I think 3D right smack in the middle of its terrible twos. We have disappointed our audience multiple times now and because of that, I think there is genuine distrust," he says in the interview. "A year and a half ago there was genuine excitement, enthusiasm and reward for the first group of 3D films that actually delivered a quality experience. Now that's been seriously undermined. It's not in any fashion, shape or form the demise of 3D, but until there are 3D experiences that exceed peoples' expectations, it's going to stay challenged. It's really heartbreaking to see what has been the single greatest opportunity that has happened to the film business in over a decade being harmed. The audience has spoken and they have spoken really loudly."

He predicts that Michael Bay's Transformers: Dark of the Moon will succeed in winning over 3D movie fans, but he says that ticket prices and Dreamworks' role in the success of 3D aren't factors affecting the plight of the format. "Here's the thing: We are giving our audience a choice. We didn't take a plane and convert it all to first class.  To people who say there is price pressure or price sensitivity, even in the family market, I say O.K., that's why we have continued to support a 2D format and made sure the 2D movie we're delivering today is better than the movie we delivered two or three years ago," he says in the story. "We're [Dreamworks] not the problem. We have made five films now in 3D and have built this amazing reservoir of knowledge and tools. Nobody else has made five 3D movies back-to-back. You can see the quality of the experience increasing with every film. the cost has gone down significantly for us the last three yeas and there is still meansinful incremental profit to us, even though the size of our audience has narrowed. On every account 3D is a win. It's not nearly as big a win as it should be and it's certainly not the win it was heading toward being. That's been heartbreaking to me because we have managed to snatch defeat out of the jaws of victory as only Hollywood can do."

Read More In: Predictions and Rumors 3D Entertainment