The game apparatus generates an image of a virtual space viewed from a virtual camera as a reference image. The game apparatus then calculates a blurring value indicative of a blurring degree of the image. The blurring value is calculated so as to become greater than a reference value in the case where a movement amount of the virtual camera is equal to or greater than a predetermined amount, and to become smaller than the reference value in the case where the movement amount of the virtual camera is smaller than the predetermine amount. The game apparatus blurs an image outside a predetermined area of the reference image such that the blurring degree increases in accordance with an increase of the blurring value. The predetermined area is determined, from among an image area of the reference image, so as to include a position of a focus point of the virtual camera. Accordingly, a blurred image is displayed on a display apparatus.