DXT5 is what is used most of the time for saving normal maps (and DXT1 for the rest) in TESIV: Skyrim but it's a lossy format and some people say that because normal maps are actually 3d vectors and not just perceived color their compression is a no-no. The option they recommend instead is halving the resolution (2048x2048 to 1024x1024) but saving them uncompressed (same weight in the end).
But, in skyrim normal map's alpha is the specular map so in that process you are also halving the resolution of the specular map, so more sacrifice to avoid the artifacts.
From my experience the posible artifacts caused by dxt compression on normal maps aren't really that harmful/noticiable and, in my opinion, not enough so that half resolution of both normal and specular is a better choice.
I'd like to hear some opinions on the matter. Maybe it depends on the situation, like for example, if you have a soft clean surface you may not need as much resolution to represent it and the artifacts can surely be more noticiable but instead on a rough surface you may want to have resolution to better represent it and artifacts are probably going to be hidden, what kind of rules would you follow, if any?
Replies
http://polycount.com/discussion/148303/of-bit-depths-banding-and-normal-maps/p1
I'm pretty sure Skyrim uses swizzled (Dxt5nm) normal maps so it should be good enough for even highly reflective surfaces.
Skyrim doesn't support BC5 afaik, so i guess i'll have to stick to DXT5
About Dxt5nm, doesn't that mean that the red goes into alpha and then red and blue are filled with the same color. If in skyrim normal map alpha channel is the specular map (yeah no colored specular...) then you can't use Dxt5nm right?