"The Hobbit: An Unexpected Journey" is the beginning of a three-part prequel to the enormously successful "Lord of the Rings" trilogy.
Jackson is back and he's using all the latest technical gizmos, gadgets and movie magic to bring this world to life in a very visual way.
"I'm lucky that the last 10 years since "The Lord of the Rings" technology has advanced quite a long way so, you know, we are at a point where you can literally close your eyes, imagine anything and put that on screen now. There are no obstacles anymore," said Jackson.
About 10 percent of theaters will offer you the opportunity to see "The Hobbit" in a new way. The film was shot at 48 frames a second -- that's twice the rate of traditional movies, which have used a standard 24 frames per second for almost 90 years.
Warner Bros. is the first studio to release a major Hollywood film using this new technology. Right now, it's a little controversial. Some love it, saying the visual is richer and sharper. But some find the new experience jarring.
"I guess this is very similar to when vinyl records got replaced by CDs and people were spinning out because CDs were so clear, as if it was a problem. The clarity was kind of scary, so it's a little bit like that," said Jackson. "I suspect the older people are going to go, 'Whoa, this is weird.' And young people are going think it's pretty cool."
The film is in theaters now. It's rated PG-13.