All engines use dds (DXT) compression by default. Some use slightly modified version, for normal maps, or other special to engine textures. And NVIDIA Textures Lib is widly used for compressing them. The main difference is that UE4 handles it on importing, while CE3 forces you to use some odd plugins for photoshop 0o.
That's technically incorrect. CE3 doesn't force you to use the Photoshop plugin. In fact, if you know the command-line arguments for rc.exe you can get it to compress your .tif files any way you want. But personally I would rather just use UE4 or Unity and change the compression options with a GUI that comes with the…