jpg has a much smaller file size over TGA, but doesn’t have alpha support. Then there’s tiff’s or .psd’s in which Unity will convert.
What do people use and/or recommend for textures, both for terrain and models?
Thanks!
The format doesnt matter since Unity will convert all imported textures to its own format anyway. Use whatever is most convenient for you. With that in mind, there is no reason to use any lossy compression.