Lucasfilm's AR/VR Division Discusses How Their Tech Could be Applied to Disney Parks at SXSW

SXSW Recap - ILM Immersive: Inviting Fans to Step Inside Our Stories

At SXSW 2025, ILM Immersive took the stage to discuss the evolution of immersive storytelling and how the studio continues to push the boundaries of virtual and mixed reality. Moderated by Elizabeth Walker, the panel featured key figures from ILM Immersive: Vicki Dobbs Beck (VP of Communications and Innovation), Mark S. Miller (VP of Creative Production), Alyssa Finley (Executive Producer), and Jonathan Harman (Supervisor of Technical Art). Together, they reflected on the division’s 10-year journey, major projects, and what the future holds for immersive experiences.

Vicki Dobbs Beck traced the origins of ILM Immersive back to the early 1990s when Lucasfilm was experimenting with interactive storytelling. At the time, technology hadn’t yet caught up with the vision, but by 2013, a combination of R&D teams from LucasArts and ILM laid the foundation for immersive storytelling. The emergence of virtual reality, particularly the Oculus DK2 headset, marked a turning point in how they envisioned storytelling, leading to the formation of ILM Immersive (previously known as ILMxLAB).

Mark S. Miller shared his unexpected journey into immersive entertainment. After a planned Star Wars film project was shelved, he was invited to help build ILM’s immersive division. Though initially skeptical about VR, his deep dive into the technology revealed its storytelling potential, especially within the Star Wars universe.

The first major experiment, Trials on Tatooine, was described as a simple yet powerful proof of concept—what if you could stand in the desert and watch the Millennium Falcon land before your eyes? This small but impactful demo paved the way for Vader Immortal, a three-part VR series that gave players the ability to interact directly with Darth Vader. The team emphasized how they had to shift their storytelling approach, making the player an active participant rather than a passive observer. A pivotal moment came when they tested a scene where Vader approaches the player, demonstrating the emotional power of presence in VR.

Jonathan Harman highlighted the studio’s more recent work on What If…? An Immersive Story, created for Apple Vision Pro. This experience blended mixed and virtual reality, allowing characters like The Watcher to appear within a user’s real-world environment. The project demonstrated how far immersive technology has come, with advancements in hand-tracking, eye-tracking, and high-quality passthrough displays.

The panel also discussed how VR and mixed reality could enhance the theme park experience, particularly within Disney Parks. One of ILM Immersive’s most significant projects in this space was Tales from the Galaxy’s Edge, a VR extension of Star Wars: Galaxy’s Edge at Disneyland and Walt Disney World. This experience allowed fans to step into a more expansive version of Batuu, exploring areas beyond the physical theme park while maintaining immersion in the Star Wars universe.

One of the most successful implementations of ILM Immersive’s technology in a theme park-like setting was the Rocket Raccoon Live activation at D23. This interactive experience featured a real-time, AI-driven Rocket Raccoon engaging in live conversations with guests, reacting to their comments, and even recognizing details like clothing colors. The panelists suggested that this type of interactive character engagement—blending motion capture, real-time animation, and AI—could be the most viable way for

The panelists noted that while VR in theme parks presents exciting possibilities, there are challenges to large-scale adoption. Current AR and VR experiences rely on individual headsets, which can be cumbersome in a high-traffic park environment. However, advances in wearable AR devices and interactive installations could lead to a future where theme park visitors experience a seamless blend of digital and physical storytelling. The goal would be to enhance—not replace—the real-world magic of Disney Parks, giving guests the ability to engage with characters, solve interactive quests, and unlock personalized narratives throughout the park.

Jonathan Harman emphasized that for VR to be fully integrated into Disney Parks, the technology must become more intuitive, lightweight, and social. “Imagine walking through Galaxy’s Edge and having the world react to you in real-time, with droids recognizing you, or holographic transmissions appearing just for you," he said. As AR glasses and mixed-reality technology improve, the potential for interactive storytelling at theme parks will continue to grow.

The panelists discussed their vision for the future, predicting that immersive storytelling will become more accessible as devices become lighter, more affordable, and more integrated into daily life. They also spoke about expanding immersive experiences beyond headsets—bringing these stories into theme parks, live events, and even home entertainment. Harman noted that younger generations are already engaging with immersive digital spaces, hinting at a shift toward more social, shared virtual experiences. And the group teased what they’re currently working on, large-scale augmented reality Star Wars experiences that would be enjoyed in outdoor, communal settings like public parks in big cities around the world.

ILM Immersive sees a future where storytelling is no longer just watched but lived. Whether through VR, mixed reality, or new interactive formats, the studio remains dedicated to pushing the boundaries of what’s possible. As Elizabeth Walker wrapped up the discussion, it was clear that ILM Immersive’s journey is far from over, and fans can expect even more groundbreaking projects in the years to come.

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Alex Reif
Alex joined the Laughing Place team in 2014 and has been a lifelong Disney fan. His main beats for LP are Disney-branded movies, TV shows, books, music and toys. He recently became a member of the Television Critics Association (TCA).