When previously talking about “Stagecraft” Lucasfilm president Kathleen Kennedy said (via:/film):

“Jon Favreau and myself went into Disney and said, this is something that we would like to try and they said, what exactly is it? And we said we’re not exactly sure. We have no idea what this is going to cost, and we hadn’t ever built anything with the technology, which we’re now calling “Stagecraft” inside ILM, but it basically is a projection system on screens, and the real innovation is that when you move the camera inside this space, the parallax changes. So suddenly you’re in an environment that actually begins to behave in the same way it would in an actual 3D environment like this.

“It means that if you want a big establishing shot in Iceland, and you don’t want to take 700 people, spend four months prepping a set because you only want to do the establishing shot and you can bring everything back to shoot interiors on a stage, that becomes very meaningful on big, huge projects and small projects. So the interesting thing with Mandalorian, the fact that we tested this technology inside of television and not on the big screen was the way we felt that we could take a big risk but not a giant risk.

“What we refer to a game-changer, that’s how it happens: you have a story that offers you the opportunity to do it differently, and to push technology that you know is right on the edge. We’re incredibly fortunate with Lucasfilm because we have ILM inside our company. And this defined the company from the time that George created Star Wars. Star Wars creates ILM. And so, ILM continues to be at the forefront of this kind of innovation, because we’re constantly telling stories that are content in search of technology. That’s what it is.”