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DXT1, DXT3, DXT5 are supported.
Texture with DXT1 is always treated like a texture with simple (yes/no) alpha channel (so it will be rendered with alpha testing) and DXT3 / DXT5 are always treated like a texture with full range alpha channel (so they will be rendered with blending).
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Texture compression formats commonly used on mobile platforms are supported as well: ATITC, PVRTC, ETC1.
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Both normal (2D) textures and cube maps may be compressed. There is no compression possible for 3D textures — neither DDS format allows it, nor do common graphic cards.