I have turned off filtering, I have also turned off anti aliasing what settings could be causing pixel are to change color in a number of places. like this. Are there settings I am missing here? If you look at his hand there is also a lot of different shades of white that are not there in the source image.
You can fix this by changing the compression to RBGA 32. Make sure it doesn’t say compressed next to it. Also in terms of file size we changed 3000 textures from compressed to uncompressed and it our game went from 35mb to 39mb.
Compressed GPU texture formats are always lossy formats. In most cases this isn’t really noticable. However especially when using pixel art this might become a problem. However since most pixel art textures are relatively small it won’t really hurt to store them uncompressed. The size of the APK (on android) won’t really be affected as an APK is actually a compressed zip file.