Many games in the 1990's, had 2d sprites in a 3d environment.
In the way TwistedTwigleg said, a fixed camera position towards the sprite. Most of these sprites only had several images, like front, left, right, back, while where moving in an area that looked like 3d, although mostly a very limited 3d. Some of these sprites only had one image or animation, which would always face the player on front.
At around 2000, textured polygon meshes started to replace the flat sprites.
So you can check Doom or Duke Nukem 3d, for example.
Many more games had that system.