You'd think that this technique would cause lag, but as the interpolated image is being generated using elements from the next "real" frame, it actually reduces latency. Andreev's technique is single-frame based rather than dual-frame. The latter approach would require buffering two images so has a big memory and latency overhead, while the technique Andreev used effectively interpolates on the fly using past and future rendering elements.
"The most simple and efficient solution is to do the interpolation in-place, during the current frame, while the previous one is on screen. This way the previous front buffer can be mapped as a texture (on Xbox 360) and used for interpolation directly," he explains.
"In terms of latency there is something interesting going on. I said that there is no extra latency, which is true. But if you think about it, latency is actually reduced because we get the new visual result 16.6 ms earlier. You see the result of your actions earlier."