Hello. Here's something I've been trying to figure out a workaround for. I'm outputting my textures from Substance Painter, and I've noticed that a PNG exports as 16 bit, but a TGA exports as 8 bit. I prefer using TGA in Unreal 4, but the TGA export from Substance Painter looks oversaturated and muddy in Unreal 4.
I have tried opening the TGA in Photoshop and changing the image mode to 16 bit to see if that improves the in engine quality, but then I lose the ability to save as a TGA. If anyone has a suggestion I would be appreciative.
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As for the TGA looking dull and oversaturated it might be that the sRGB property isn't checked for that texture, or even that the PNG is actually washed out when it is imported.
The lighting in the scene itself could be darkening things also.
I guess open both versions in Photoshop and confirm they visually look the same (with one being 16bit vs 8bit) and then open them up in engine and see how they look, also try toggling sRGB check box, this should be on for an albedo texture but as I mentioned can sometimes it doesn't work as expected or images import with it unchecked.
For images that are not storing data and don't require a lot of dit-depth, like for example color (albedo), its assumed you do not need high dynamic range textures. Most game engines and game pipelines assume you are using 8 bit albedo as it can be represented well. So for UE4 the correct image is actually the correct(er) tonemapped texture on the right .
SRGB is checked for the base color texture of each in UE4.