Terrain Tessellation
Our "dynamic megatexture" terrain system contains a lot of powerful capabilities we haven't yet been able to tap into. One advantage of this approach is that it works extremely well with hardware tessellated terrain. In fact, our terrain system was originally designed with this in mind, which is the main reason we have a slot allocated for a displacement map. This video shows my first-pass implementation of the technique. When a displacement map is assigned to a terrain texture layer, painting the texture layer results in geometry that appears right as you draw. As you can see in the video below, this is one of those features that are just "magic".
To make this look good, you really need high-quality textures. An auto-generated heightmap will look grainy and "spiky" but a high-quality material created from a sculpt will look incredible.
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