From the Saturn FAQ By John JHokansonJr
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5.1 Can the Saturn perform transparency and light sourcing effects?
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The answer depends on the context in which this question is asked.
The Saturn is at *least* capable of generating transparent layers for
use in 2D spirte-based images. Furthermore, pseudo 3D transparencies
(like the water in Panzer Dragoon) are also possible. These effects
can be done directly by the VDP2.
If anybody doubts this (and there have been a few), you can check out
games such as Astal, Darius Gaiden, and Radiant Silvergun. These are
but a few examples. You can also simply powerup your Saturn and check
out the system settings. The menu screens themselves provide a
glimpse at the Saturn's layered transparency effects. Effects such as
these are nothing really new, as they were seen earlier on Nintendo's
Super Famicom, and perhaps on other platforms that preceded the
Saturn.
Where the Saturn does have trouble, is in the generation of these
effects in a 3D environment. Along with lightsourcing, three
dimensional transparency must be generated through software code.
This is not a problem if the developer is familiar with writing
Saturn software or was provided with the necessary programming
libraries. For instance, Sega's "Sonic-R" features 3D transparency
throughout the "Radiant Emerald" course, and lightsourcing can
clearly be seen along the corridors of Lobotomy's "Powerslave"
("Exhumed" in the UK).
Brian Osserman <osserman@math.mit.edu> writes:
"The situation with transparencies on the Saturn is exceedingly odd.
The most common kind is via the background processor, which can more
or less put two properly texture-mapped translucent perspective
correct planes. This is what Panzer Zwei and Panzer Saga use for
water, for instance. Beyond this, I don't remember the details, but
Sonic R and Burning Rangers seem to use two different hacks to get
non-dithered transparencies. I can't remember whether there are any
other examples, though. I think these were cases of exceedingly
clever programming, though, and it's no coincidence they were both
late in the Saturn's lifetime."
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The Saturn is equipped with dual custom VDP chips for graphics
processing.
The VDP 1 chip is primarily responsible for sprite generation.
Polygon generation is accomplished through manipulation of the
sprite engine. Texture mapping and goruard shading is also handled
by the VDP 1. The VDP1 relies on a dual frame buffer that handles
rotation and stores textures in special 512K cache.
The VDP 2 serves as the Saturn's background processor. Certain
special effects such as texture transparency and playfield rotation
and scrolling (up to five fields at any given time) are handled here.
Both VDP chips have direct access to the both SH2s, as well as
direct memory access (DMA) to both the main and video RAM.