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What is Virtual Production? A Beginner’s Guide to On-Set VFX

James Hogan
by Video Tech Expert
updated Nov 14, 25
In this article
    1. Definition
    2. Types of Virtual Production
    3. Benefits
    4. Technical Breakdown
    5. Traditional vs. Virtual Production
    6. Current State
    1. Real-World Applications
    2. Case Studies
    3. Limitations and Challenges
    4. Future Outlook
  1. Practical Demonstration Section - How to Refine a Virtual Production Scene

Understanding Virtual Production

The concept of blending real actors with artificial environments has been a staple of filmmaking for decades. Now, imagine if directors could view and adjust those virtual settings in real time while filming. This is exactly what virtual production brings to modern filmmaking. The technology has been reshaping how movies, commercials, and even live events are created.

virtual production on the mandalorian
Definition

Virtual production is a filmmaking technique that combines physical sets with digitally created environments. This technology uses tools like motion capture and facial tracking to create realistic scenes.

If you're familiar with green screens and CGI, virtual production advances these techniques by giving filmmakers the ability to view and interact with digital elements live on set. Instead of waiting until post-production to see how a scene comes together, directors and crews can adjust lighting, camera angles, and visual effects in real time.

Types of Virtual Production

Depending on the stage of filmmaking and the goals of the production, virtual production techniques can be applied in different ways.

Previs (Previsualization):
Previs is part of the early planning phase, where filmmakers create digital mock-ups of scenes using CGI. It helps outline camera placement, shot composition, and pacing before filming starts.
Pitchvis:
Pitchvis is similar to previs but created specifically for pitching ideas. It uses polished visuals or animated sequences to present a clear creative vision to studios, investors, or collaborators.
Techvis:
Techvis focuses on translating creative ideas into practical shooting plans. It includes detailed diagrams and 3D models to plan camera placement, lighting setups, and other technical details.
Stuntvis (Action Design):
Stuntvis is a visualization tool for planning action sequences or stunts. It helps coordinate movement, timing, and safety measures while ensuring shots remain visually engaging.
Postvis:
Postvis combines live-action footage with rough CGI or placeholder effects after filming. It gives editors and VFX teams a guide for completing final shots.
Live Compositing (Simulcam):
Live Compositing is a real-time tool that allows directors to see actors integrated into virtual environments on monitors while filming, giving immediate feedback and creative control.
Virtual Scouting:
Virtual Scouting helps directors and cinematographers explore virtual sets on a computer. It lets them plan camera angles and lighting without needing to build physical sets first.
VR Location Scouting:
VR Location Scouting is similar to virtual scouting, but it uses VR headsets to walk through and interact with a virtual set as if they were on location.
In-Camera VFX (On-Set Virtual Production):
In-camera VFX uses giant LED walls to display digital environments right behind the actors as cameras roll. Instead of shooting in front of a green screen, the cast and crew can see the actual background in real time.

Benefits of Virtual Production

Because of the flexibility and efficiency it provides, virtual production is now widely used in filmmaking. Some of the main advantages include:

Lower Production Expenses:
Since many environments are created digitally, physical set construction, travel, and location rentals can be minimized.
Virtual Locations:
Filmmakers can access places that would otherwise be too expensive or impossible to shoot in because the entire world can be built in software.
Remote Collaboration:
Teams can work together from different locations by accessing the same virtual environments, making coordination easier.
Streamlined Post-Production:
With visual effects integrated during filming, there's less need for heavy editing after the shoot.
Reduced Time on Set:
Real-time adjustments to backgrounds, lighting, and effects mean scenes can be captured faster, cutting down overall shooting time.

Technical Breakdown

Now, you might be curious about how virtual production actually works. As we have briefly introduced, this technique relies on real-time rendering, camera tracking, motion capture, and large LED walls to merge live footage with digital environments as filming happens.

These systems are synchronized so that camera movements in the physical world match those in the virtual space and create seamless, realistic shots without waiting for heavy post-production.

Tools Used in Virtual Productions

virtual production stage samsung
LED Walls:
Many productions film inside a virtual production studio equipped with massive LED walls built from interlocking panels. Studios can choose to rent ready-made volumes or collaborate with virtual production companies to design custom setups.
create virtual environment on unreal engine
Game Engines:
3D game engines power the virtual environments seen on LED screens. Unreal Engine 5 is the most widely used, featured in shows like The Mandalorian. Other engines such as Unity, CryEngine, and Godot are also popular for building immersive sets and effects.
high performing gpu
High-Performance GPUs:
To render these detailed environments, high-end GPUs are important. Strong graphics hardware ensures smooth playback and realistic visuals on large LED volumes.
3d capture and animation software
3D Capture and Animation Software:
Tools like RealityCapture use AI and photogrammetry to generate 3D models from photos or scans, while animation software such as Houdini creates complex effects like reflections, particles, and simulations.
3d asset libraries for virtual production
3D Asset Libraries:
Libraries like Quixel Megascans provide a massive catalog of pre-built 3D objects, textures, and environments, which saves time in production by reusing high-quality assets.
virtual production camera tracking system
Camera Tracking Systems:
Accurate camera tracking ensures the virtual and physical worlds move seamlessly together. Systems like OptiTrack and StarTracker are widely used to capture precise camera positions and movements on set.
virtual production vr headsets
Virtual Reality Headsets:
VR headsets help teams plan scenes and explore virtual sets during pre-production. Devices like Somnium VR One and MeganeX enable crews to walk through environments, adjust layouts, and visualize shots before filming begins.

Traditional vs. Virtual Production

Before virtual production became common, filmmakers relied heavily on practical sets, location shoots, and green screens to create their scenes.

Aspects Traditional Production Virtual Production
Workflow Linear process with separate filming and editing phases Integrated process with real-time visual feedback
Sets Physical builds, real locations Digital sets, LED walls
Costs High travel and set expenses Lower overall costs
Visual Effects Added mainly in post-production Real-time integration
Creative Control Limited previews, many elements only visible after editing Real-time visualization
Collaboration Larger crews are needed for physical setups Enables tighter collaboration across departments
Filming Space Soundstages, physical sets, and locations Dedicated virtual production studios with LED walls and digital environments

Traditional Production Workflow

traditional production workflow

Virtual Production Workflow

virtual production workflow

Current State

Virtual production first emerged in the early 2000s, with filmmakers experimenting with game engines and real-time rendering. George Lucas was among the first to explore this technology for the Star Wars prequels.

Nowadays, the field is advancing rapidly with the help of real-time rendering engines like Unreal Engine and Unity, advanced camera tracking, and LED wall technology. These tools make it possible to capture immersive environments on set while integrating motion and facial capture for more lifelike performances.

After labor strikes in the previous year slowed down media and entertainment production, the adoption of virtual production surged, recording a 35% increase in use across corporate and educational fields.

Application Section - When/Where to Use Virtual Production

Real-World Applications of Virtual Production:

For most viewers, it's not always obvious which films or shows use virtual production, but the technology has found its place across many industries. Its versatility has made it valuable not just in filmmaking and television but also in advertising, gaming, live events, education, and corporate media.

Industry Impact:

virtual production in film
Film & TV:
Virtual production has transformed filmmaking by reducing the need for costly location shoots and large-scale set construction.
virtual production in commercial shot
Advertising:
Commercials benefit from virtual production's ability to create polished visuals on tight deadlines. Brands can produce multiple variations of an ad in one shoot and swap out backgrounds instantly.
virtual production in gaming
Gaming:
Game studios use virtual production for cinematic cutscenes, trailers, and immersive storytelling. Motion capture and real-time rendering create lifelike characters and environments, while virtual scouting helps designers plan levels and action sequences more efficiently.
virtual production in broadcasting
Live Events & Broadcasting:
Virtual production technology powers concerts, award shows, and sports broadcasts by replacing traditional green screens with dynamic LED backdrops. Broadcasters can switch environments instantly and create visuals without moving to different venues.

Case Studies of Virtual Production in Films

    • Star Wars: The Mandaloria:The Disney+ series The Mandalorian set a new standard for virtual production by filming inside massive LED volumes. These high-resolution panels projected detailed environments that moved in sync with camera angles, creating lifelike backdrops without the need for green screens.
    • Gravity (2013): The film Gravity (2013) showcased groundbreaking virtual production techniques using detailed previsualization for nearly every shot. The team introduced a “Light Box,” a 20-foot cube lined with over 4,000 programmable LED lights. These LEDs displayed moving visuals of space and Earth, giving actors a realistic reference to react to while providing accurate scene lighting. Most of the film’s visuals were computer-generated, with the actors’ faces being the only real elements in many shots.
    • The Lion King (2019): The 2019 adaptation of The Lion King was filmed entirely in a virtual environment. Cinematographers used real-world equipment like cranes, Steadicams, and drones to control digital cameras, blending traditional filmmaking tools with a fully digital set for a seamless cinematic experience.

Limitations and Challenges

Setup Cost:
While virtual production can save money in areas like location shooting and reshoots, the upfront investment is still high. Studios need LED walls, motion capture gear, and powerful rendering systems. This initial expense can be difficult for small studios or independent creators to manage.
Technical Learning Curve:
It takes time and expertise to learn how to use real-time rendering software, motion capture tools, and complex camera tracking systems in virtual production.
Resource Demands:
High-quality virtual environments demand powerful computers, skilled artists, and a large storage capacity. These requirements can strain budgets and infrastructure, especially for projects with tight deadlines or limited teams.
Scalability Issues:
Scaling virtual production to handle bigger scenes or multiple locations can be challenging. Expanding setups require more LED panels, equipment, and staff, which may not be possible for every production.

Future Outlook

Virtual production is expected to have a significant impact on shaping the future of filmmaking. The technology is evolving quickly, as creators have the tools to produce highly realistic visuals with greater speed and efficiency.

Moreover, virtual production is also creating opportunities for both large studios and independent filmmakers. Techniques that were once limited to high-budget productions are now within reach for smaller films and series. They can now experiment with ambitious storytelling, explore more creative worlds, and deliver cinematic-quality visuals without logistical barriers.

Practical Demonstration Section - How to Refine a Virtual Production Scene

During shooting, the crew can tweak lighting, colors, and environmental details instantly. Although some of the edits can be done live, post-production work is still needed to refine the visuals and polish the effects.

A great way to refine virtual production footage quickly is by using Wondershare Filmora. It is one of the best video editors that offers intuitive tools for color grading, motion tracking, visual effects, and AI-powered enhancements, making it easier to blend digital and physical elements.

How Filmora Helps Fine-Tune Virtual Production

Adjust colors, tones, and lighting to match virtual environments with physical footage for a cohesive look.
Attach text, effects, or graphics to moving objects to enhance realism in dynamic shots, even powered by Mocha FX.
Remove unwanted backgrounds or isolate subjects without relying on green screens.
Cinematic Effects and Transitions:
Add polish with seamless transitions, cinematic filters, and visual effects.
Use AI tools to clean up dialogue, reduce noise, and create immersive sound design.
Fine-tune movements and effects frame by frame for more precision in post-production.
Efficient Editing Workflow:
Filmora's simple interface makes it easy to quickly refine scenes without sacrificing quality.
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Frequently Asked Questions

  • What is the main difference between virtual production and traditional green screen?
    The main difference is that virtual production uses LED walls to display digital environments in real-time during filming, allowing actors and crew to see the final background as they shoot. Traditional green screen requires actors to imagine their surroundings while filming, with all backgrounds added later in post-production.
  • Do I need expensive equipment to start with virtual production?
    While high-end virtual production setups with LED walls can be expensive, there are more accessible entry points. You can start with game engines like Unreal Engine, consumer-grade VR headsets, and basic motion tracking equipment. Many independent filmmakers begin with these tools before investing in more advanced setups.
  • Can virtual production completely replace location shooting?
    Virtual production can replace many location shoots, particularly for environments that are difficult, expensive, or impossible to access. However, some productions still benefit from authentic location filming, especially when specific natural elements or cultural authenticity are crucial to the story.
  • What skills are needed to work in virtual production?
    Virtual production requires a blend of traditional filmmaking skills and technical expertise. Key skills include knowledge of game engines (like Unreal Engine), 3D modeling, cinematography, lighting techniques, and understanding of real-time rendering. Collaboration between technical artists and creative filmmakers is essential.
  • Is virtual production only for big-budget Hollywood productions?
    While virtual production gained popularity through big-budget productions, the technology is becoming more accessible to smaller studios and independent filmmakers. Advances in technology and decreasing costs of equipment are making virtual production techniques available to a wider range of creators across different budget levels.

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