S3 Graphics said Monday it had inked an agreement with Sony Computer Entertainment and Sony Computer Entertainment America for its licensing of S3 Graphics’ S3TC texture compression technology for the upcoming PlayStation Portable console.

S3TC enables high level of compression while maintaining texture detail and quality. This balance of quality and compression becomes even more important for portable applications when efficient use of memory directly impacts the size and quality of software applications and games.

“S3TC technology allows PlayStation Portable software developers to take advantage of very high quality texture compression technology and benefit from a range of proven tools and libraries,” said Masayuki Chatani, Corporate Executive and CTO, Sony Computer Entertainment.

This license agreement reinforces S3 Graphics’ S3TC texture compression technology as the industry standard for both PC and game console graphics, the Freemont, California-based graphics firm said.