Is BC5 NM Compression higher quality than DXT5? What are the differences/advantages?
Interesting question, I don’t know it personnaly but by going on MSDN forums I found that :
BC5 -> Two-channel color Two color channels (8 bits:8 bits) Direct3D 10
this looks interesting too :
https://developer.valvesoftware.com/wiki/DirectX_Texture_compression_5
Edit: from what I’m reading DXT5 should be faster but uses a more agressive form of compression
Does this mean that BC5 has better quality NM compression?
It’s should have a better quality normal map compression if I reffer to the text yes.
DXT5 is just a slightly better version of DXT1+alpha, which is for color maps. BC5 is specifically for normal maps because it compresses the R and G channels independently of each other and discards the B channel to save file size (since the Z can be derived in the pixel shader).
I do not recommend using anything other than BC5 for normal maps as that is the explicit purpose of the format.