Thanks for responding...
You can RLE compress 32bit .tga's. I use photoshop, I tested it and it does preserve the alpha channel.
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Originally Posted by ref
All games must decompress all textures that it loads in order to display them, all terrain files in sh3 are rle compressed, advantage small size on disk, less load time, disadvantage has to be decompressed in memory.
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So I take it that it could hurt performance if I were to RLE compress every texture? Bummer. I am still doing research on this but there's not a lot of info on the web regarding the performance gains/losses with graphic intensive games.