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Baking is a technology that stores lighting and shadow information within objects, and away from their materials. It means that a user can change the material and/or modify its properties even change its texture without the need to bake it again and again.
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The image below shows the difference between enable and disable light baking
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Using Light baking for superior Mobile VR
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The user can switch between the two to experience day and night views by use Sun light or interior IES lights in the VR scene.
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