Read original post at Catalin Zima's Blog
As I wrote in my previous post, Windows Phone 8 does not support WIC components, which means that unless you want to write a .png loader manually, you need to have your textures in .dds format. Which is actually quite a good thing, since .dds supports hardware texture compression, if you need to save on memory. The only issue is that .dds is not a common format, and most image processing software don’t support it out of the box.
So let’s take a look at various ways we can convert images from common formats (.bmp, .png, .jpg) to .dds, starting with manual conversion, and ending with an msbuild script to do the work for us.