Normal mapping is one of the standard techniques used in CRYENGINE to add details to a surface without increasing the number of polygons. A normal map can represent surface details like wrinkles, scratches and beveled edges by storing the corresponding surface normals in a texture.
CRYENGINE is using tangent space normal maps which can be reused on different models. These normal maps can either be created from a heightmap or derived from a high-polygon model based in any software whether its Max, Maya, Xnormal etc.
To the left is a Specular Map, Middle is a Diffuse Map, Right is a Tangent Space Normal Map.
For CRYENGINE 3.6's Physically Based Shader model, we introduced the "DDNA" texture, which is a standard DDN texture like before but with the addition of the Gloss map inside the Alpha channel of that texture.
RGB contains the standard Normal map texture information and a Greyscale alpha contains the Gloss map information.
Ensure that you name your texture map correctly. You cannot use _ddn or _DDNA, it must be _ddna for the Resource Compiler to recognize the texture correctly.
It must also use the NormalmapWithGlossInAlpha_highQ preset from CryTIF.
Not all colors represent valid normals. This is why it is dangerous to apply certain image manipulation to normal maps (e.g. down sampling with bi-cubic filter, sharpening, alpha blending). The CryTIF Plugin has a feature to visualize such problems.
There are a few ways to go about this with CRYENGINE and all require a low resolution and high resolution mesh. Some notes to keep in mind if you want to create a good normal map are:
Be sure that custom normals is checked when exporting your geometry so that your model has the same normals that you had in your bake.