Seems the common practice on mobile is to just use ETC1 for textures (which is the only format guaranteed by GLES2 / WebGL) and work around the lack of alpha channel by using 2 textures when alpha is needed. On mobile DDS is not too commonly supported and different GPU vendors support mutually incompatible formats (PVRTC for PowerVR chips etc). Some links to various developer docs / forums about the ETC1 alpha hack: Unity: http://forum.unity3d.com/threads/73998-DXT-or-PVRTC?s=d35b7e4f1d2c1e389931b6dceb242598&p=474892&viewfull=1#post474892 ARM: http://malideveloper.arm.com/develop-for-mali/sample-code/etcv1-texture-compression-and-alpha-channels/ Flash: http://www.adobe.com/devnet/flashruntimes/articles/introducing-compressed-textures.html
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