What are DDS Files?
The DirectX Texture tool-DxTex's native file format is called "DDS" file format because it encapsulates the information in a DirectDrawSurface.
This format is easy to read and write and supports features such as alpha (Pixel opacity info) and multiple mipmap levels, as well as DXTn compression.
The DDS file format is used to store textures and cubic environment maps, both with and without mipmap levels. This format can store uncompressed and compressed pixel formats, and is the preferred file format for storing DXTn compressed data. Other than DxTex, this file format is supported by some third party tools, and by the Direct3D extensions (D3DX) library.
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