Sprite quality reduces after scaling down

When I export my sprites from photoshop the quality of the png is pretty high and it remains the same when importing them into unity, but whenever I try to scale down the sprites inside of unity they lose their quality and look pixelated.

I know that this can happen when scaling sprites up but why does this happen when I downscale my them? Is this a unity issue and is there a fix to it?

Excuse me for my bad English, I’m not a native speaker, but I hope you still understand what I’m trying to ask.

Thanks.

Ok, so let’s say you have 1920x1080 (Full HD) resolution and a 1920x1080 sprite. So each pixel of this sprite takes up 1 pixel on the screen. Now let’s say you scale the sprite down by 2, so it’s 960x540 now and it takes up a quarter of the screen.

This means that each pixel on the screen must now display 4 pixels of the sprite to keep the original quality. This is of course impossible, so some pixels are discarded. This effect is more noticeable with more detailed sprites.

This effect is called aliasing and is usually referenced when talking about objects distance to the perspective camera, but it’s the same effect. Object is smaller, so not all pixels can be displayed.

To fix this you need to enable mip-maps in import settings