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Normal textures look intensified in Material Editor?

Dumb question but I’ve been told it’s correct for normal textures to look more saturated(i.e. attached screenshot). If so, is there a particular reason for this?

After experimenting with bit depth, compression setting, and sampler type (8-bit maps,normalmap DXT5, Normal), it’s hard to tell what’s correct and incorrect.

Exporting a normal texture with Linear color space in Substance Designer seems to produce the same effect suspiciously so I’m curious if I’m actually doing something wrong.

unknown.png

I believe this is because the normal map range is fit to the -1 to 1 instead of 0 to 1, and the material editor reflects this when sampler type is set to normal.

Ah ok. So is there any actual difference or is the thumbnail just a visual difference?

Thumbnail only.