Hi Mike,
making good sky is one of the things I did some research on ... but did not come with anything spectacular yet.
Here just to sum my thoughts:
Skybox
+ Can look very good
+ Cheap on performance
- It can look "too good" and not fit with the rest of scene
- Static clouds ... this simply does not happen in reality
Animated skydome
+ Adds more life to the scene
+ Can be usually parametrized
- Is usually more expensive
- It is easy to do "something blurry animated on the sky", like Quake 3 does for example, but it does not look good
- I personaly do not like procedural stuff, I can smell perlin noise from big distance - it is used tooo often
I was thinking of some particle chunks ( clouds ) shifted on the sky - but I am not sure how cheap would be that, and it would probably require long view distance to look natural.
Maybe some hybrid approach could take place as well.
Just thinking out loud,
Petr
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