Because the *.dds compression format was specially developed for games in a DX environment
From Nvidia papers:
Quote:
....in conjunction with the EXT_texture_compression_s3tc extension offers a tremendous boost for the rendering pipeline at different levels:
• Faster rendering
• Lower texture memory requirements
• Faster texture downloads into texture memory
• Lower disk space requirements for storage and faster disk access.
Additionally, the use of compress textures allows the application to utilize higher resolution textures with the same memory footprint.
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The Targa format (*.tga) is an older graphic format, mostly used for broadcasting, as it has excellent color quality including an alpha channel...