Transparency in PSD file acts like a cutout?

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I can't seem to get the texture to overlay the diffuse color in the viewport. Even though its not assigned to opacity map it still acts like a coutout to the object.
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Can you please upload a test file.
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Now I can't even get it to load PSD without crashing (13.0.401). I have an older version 13.0.198.21 that works to an extent, but still the cutout effect is there.

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Crashdump for debug.

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psd-crash.zip (37.8 KB)

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you are probably better off writing your own shader for your purpose.

you can dive in the mantra surface shader and customize it to overlay the graphic on another surface color using the transparency.

also i would never use psd files in houdini but instead use tif files. they also support layers with photoshop and work fine in houdini.
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Both using PSD files and pre-packaged shader is for the purpose of saving time. Most of the 3d packages have no problems with PSD files. You can always export for final rendering, but while working and reworking textures (especially ones you get for packaging etc.) PSD is much better. This behavior can't be by design as I fail to see why would automatically using transparency in a texture as a cutout on a general purpose shader be of any use.
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wait houdini does load/ used to laod psd's ????
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