A TextureGroup defines how your texture is treated on Import, and how exactly it is Compressed.
Essentially, TextureGroup is a preset for Compression types, target image size, and image Format treatment.
Full settings can be found in ….Kit\r4data\engine\textures\texturegroups.xml (thx ScoutBr0 for the info!!)
Notes
- Compression is not something that should be avoided at all costs - instead, its a tool that allows you to save resources on something small, to then use more resources on something important.
- If your Texture has many fine details, needs accurate color representation (most relevant for grey/dark things), or takes a whole lot of player’s screen - you may want to use less compression for it.
- If its something less relevant, is used by many objects on screen at once, or objects using it are so tiny the player would rarely zoom onto them - maybe more compression would do just fine.
- Compression is much less noticeable on colorful Diffuse/Specular textures.
- For Normals, more compression = more blocky Compression artifacts, especially if the size of your Normal is small (<512px).
01. First decide what level of compression your Texture needs
- Regular DXT types (CharacterDiffuse, WorldNormal, NormalMapGloss etc etc) for strong Compression, best performance, depending on if your texture is RGB or RGBA; best choice varies depending on a texture types.
- QualityColor for Compression of relative quality and medium perfrormance impact, RGBA & RGB, all texture types.
- Default, None, “No Mips” for No Compression and the worst performance, RGBA & RGB; buggy; all texture types.

Maximum Compression, QualityColor, No Compression
02. Then choose a TextureGroup based on your Texture’s usage
Info on Texture Types.
RGBA Normals:
- QualityColor
- NormalMapGloss and its variations
- None / No Mips
RGB Normals:
- QualityColor
- NormalHQ
- None / No Mips
RGBA Diffuse:
- QualityColor
- anything DXTAlpha
RGB Diffuse:
- QualityColor
- anything DXTNoAlpha
RGBA Other (Spec, Emissive etc):
- QualityColor
- anything DXTAlpha
- None / No Mips
RGB Other (Spec, Emissive etc):
- QualityColor
- anything DXTNoAlpha
- None / No Mips

TCM_… refers to Compression type and not TextureGroups because there’s just too many of them. If you want to check which is which, examine the texturegroup.xml in your r4data.