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In game development, it's crucial to consider the format of your images. Two common formats are JPEG and PNG. JPEG, created by a group of industry contributors, is widely used for internet images due to its efficient compression, though it doesn't support transparency. In contrast, PNG provides transparency, which is essential for certain designs but lacks the file size benefits of JPEG. Therefore, the general guideline is to use JPEG for images where size matters and PNG when transparency is needed.