Why do I get more precision loss at negative Z values?

Great to hear!

I would definitely only use camera relative if you know you need it- i.e. if you know this asset will exist probably >1m units away from world center just to be safe. Using Large World Coordinates in materials is more expensive, since the calculations needed in HLSL add more complexity.

That being said, this is a great example as to why you should always make sure your scene is centered around the world origin. LWCs were introduced to cheaply expand the size limit of open worlds, but that does not mean its systems should be used unless they have to be.

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