I've been working with manual texturing for some time (i.e. creating my textures from bitmaps). The problem is that I want to create games that are not only small, but load fast.
with my current amount of ram, the quality I'm driving for is not possible with manual textures. That said I've decided to move to Procedural textures.
My question is, does anyone know of a application that converts manual textures to procedural?
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You can't get a better quality image in less RAM space. The hardware needs those images in a very basic (essentially .bmp) format, in RAM, in order to draw them to the screen. If you want better quality, then you need to be using more RAM.
Next, you don't seem to understand what "procedural" means. Literally, from a procedure. So, you have an algorithm that, given certain inputs, outputs a texture. However, you can't reasonably go the other way: you can't have a texture and then figure out an algorithm for it, because it wasn't generated from an algorithm in the first place. Hell, even if it was, it's essentially a one-way operation, and would require an absurd amount of work to go the other way.
What you did get right, however, is that using procedural content will be smaller and load faster... on/from the disk. You're not going to get better performance out of procedural content, because content is content, however it was developed.
Short answer: No, nobody does, and nobody ever will, because such a thing does not exist. If you want to develop procedural textures, then you're going to need to start with some upper-division mathematics. Try looking up fractals.