At my last job I was an environment lead but unfortunately most of our company got the axe. Currently, due to the location of where my family settled down, there weren't a lot of options. I am currently an Outsourcing Artist who handles a lot of different areas. It's mainly taking work that comes in from outsourcing, sometimes polishing it and getting it into the game (requiring both technical skills and minor art skills). I work with a wide diversity of assets - characters, props, and more. Sometimes I may have to redo collision or make LODs or things along that line. Mainly use 3DMax and the engine. None of this stuff is really portfolio work but it does showcase my flexibility to fulfill a lot of different work in different departments.
I was approached about possibly moving into a position which would be more of a world artist - not creating any new art but rather sculpting terrain, painting down textures, foliage, and so on. Almost an environment designer. I wouldn't really be using 3DMax here or doing more of the traditional polygonal work. It'd be all in engine work. Here I might have some portfolio shots I could use. I don't really want to move into fulltime designer work in the future though.
I'm trying to think which one would be better suited for me. I'm not really sure if either one have a direct correlation to other companies and neither one really are about creating original art but I generally dig environment work and as my availability changes in the future I'd like to get back into more of the hardcore AAA environment work.
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If you enjoy the creation process then you might feel restrained or limited, but once you get used to using other peoples content to create your own composed scenes and levels it gets pretty fun. you just kinda have to drop the desire to be able to point to a prop and say "i made that" and just more so point to the overall scene assembly as what you kick ass at.
In my experience, world artist and designer are still fairly different roles, where design blocks out the gameplay of the space and world artists support them and make it look pretty