What Image Format Does Unity Convert Textures To?

I’ve tried importing textures into unity in many different formats. After importing the textures into unity the look like $#%*, no offense Unity.

Only format that seems to keep proper Alpha Channels is .TIF, and file sizes stay roughly the same, however the resolution looks horrible.

I am wondering how to properly export these textures from Photoshop, or what image format unity uses, so that they don’t have to be converted at all?

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I use PNG for everything. Check the import settings on each texture, you can override the defaults. Probably your textures are large but your import settings are down-sampling it.