A moving object and a topography object having a portion with different heights are positioned in a virtual space, and the moving object is controlled so as to move on the topography object. A real world image is obtained from an imaging device, and a position and an orientation of a marker in the real world image are detected. On the basis of a result of the detection, a virtual camera is positioned in the virtual space, and a moving object and a topography object are rendered on the basis of the virtual camera. Here, the real world image obtained from the imaging device is used as a texture for the topography object. The rendered moving object and the topography object are synthesized on the real world image and a synthesized image is displayed on a display device.