1. A method comprising: dividing an image into a high resolution (HR) inset portion, a peripheral portion, and a transitional portion between the HR inset portion and the peripheral portion, wherein the image is at a first resolution, and the transitional portion has an inner boundary between the transitional portion and the HR inset portion and an outer boundary between the transitional portion and the peripheral portion, wherein the peripheral portion is at a second resolution that is less than the first resolution; blending the transitional portion of the image such that there is a smooth change in resolution from the inner boundary at the first resolution to the outer boundary at the second resolution; generating an inset region using the HR inset portion of the image and the blended transitional portion of the image; generating a background region using the peripheral portion; providing, for display, the inset region to a HR inset display on a head-mounted display (HMD); providing, for display, the background region to a peripheral display on the HMD, and wherein an optics block combines the displayed inset region with the displayed background region to generate composite content.