Anyone know why the dds file opens like this? Shouldn't it be a squared image like 1024x1024? I didn't alter the image before hand, Photoshop just opens it like that...
Yup, absolutely nothing wrong about this. Texture files can actually be any size as long as the UV is designed to fit the scaling. I regularly do 1:2 scale textures for a game I'm working with professionally and it's a smart way to avoid excess space being spent. As for the 'layered' look, it just looks like someone adjusted the texture and didn't bother to clean up the excess space, totally normal.
Some of the dds files are like that. Pine trees, for example, are not a square file. A few weapon models, I think, are also like that. Its just how Bethesda decided to use UVs I guess. No harm in it. Why they or anyone else did it probably has to do with making more appropriate UV layouts. It would be silly to cut a tree UV in half just to get better use out of a square boundary. But the hands, that is strange. You'd think they'd do it like how some boot UVs are laid out (in a square file).
As brokefoot said all the hands dds are like that. If I had to pick a why I'd say it avoids wasted space and resources since a square would leave empty space above and below the hands.
As for the layers, you'll also see that often in body textures, perfectly clean ones are rare. Not too sure why but it doesn't really matter since the mesh (nif) only takes a determined part of the texture. You could put rainbows and butterflies outside the actual hands it wouldn't appear in your game.
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As for the 'layered' look, it just looks like someone adjusted the texture and didn't bother to clean up the excess space, totally normal.
As for the layers, you'll also see that often in body textures, perfectly clean ones are rare. Not too sure why but it doesn't really matter since the mesh (nif) only takes a determined part of the texture. You could put rainbows and butterflies outside the actual hands it wouldn't appear in your game.