In 1977 George Lucas released Star wars a new hope, the first in his space sage. When George pitched his space sage, FOX and most people wondered how he would pull it off, considering nothing to this scale had been done at this point.
With all the effects George wanted he was having problems with finding a special effects company to help work on star wars. In the end George Lucas formed his own special effects company called "Industrial Light and Magic" This company was formed in 1975. ILM has since gone on to working on over 300 films, but it all started with Star wars. This had the most special effect for its time and had a lot of practical effects. In modern times would be a lot easier but this is where it all started. The sets would be built for everything scaled down to create these huge scenes. For space battles the ships would of been made scaled down and filmed against a green screen or black background depending on its use. Original the imperial star destroyer in the opening scene was going to be 40 foot long but due to budgeting issue was scaled to around 4 foot. Stop motion was also used for stuff things as the AT AT walkers from the empire strikes back. For that scene they would have created a scaled down landscape and by hand made and moved the models. Not to mention the shots with cast members in cock pits and some scene would of been to scale. but these shots would of most likely been blended together. This trick is still used to this day but these days its CGI. But trick is to film the foreground and the background separately then overlay them.
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