* PNG's are using more commonly in other fields like the web, photography, etc * PNG's have built in windows preview support so you can see the thumbnail picture rather than just seeing the "TGA logo" or something similar in the Windows file explorer * PNG's seem to be built for handling transparency and alpha channels.…
This, bad handling of 16bits png. Normal map are fine because it has been fixed. I reported the issue too for regular PNG (aka BaseColor) but don't know if it has been fixed recently. Another problem with PNG in UE4 is that by default it will discard pixels where the alpha (transparency) is at 0 (black). This is very…