Yeah, baking produces image textures, like JPG or PNG files. They will depend on the resolution so you can have 2K images, 4K images, 8K, etc. And yes, you got it, it is static, a good old normal non-moving image that you slap into a model to create some illusion. It’s all fake and trickery in CGI. That’s not a bad thing though, look a magician, unless you think magic is real, which it isn’t.
