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UE5 texture compression question

Hi, I am trying to reduce 8k targa textures within UE5 and I have noticed that the Compression setting has changed. I am trying to compress them and my question is
should I resize in PS save as png (no need for alpha for the materials)
or what is the best solution within UE5 to use lower res

Thanks so much in advance!

A

Found this thread wanted to share, still trying variation in UE5