A relative position of each object with respect to a point of view is changed by changing at least one of information indicating a position of the point of view and information indicating a position of the object, the pieces of information being stored in a storage section. It is determined whether or not a distance from the point of view to each object in a virtual space is smaller than or equal to a predetermined distance, with reference to the information indicating the point of view and the information indicating the position of the object. Next, information indicating a transparency of an object whose distance is determined to be smaller than or equal to the predetermined distance is updated every a unit time so that the transparency of the object is gradually increased. A virtual image including the object is drawn with reference to the information indicating the transparency.