Can sprites have shadows, and what solution should be used?
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Sprites can’t generate shadows, but as @CodingCrusader demonstrated, you can use planes instead of sprites if you want to generate shadows. If you activate billboard mode, the behavior will be closer to that of sprites:
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If you are creating a 2D scene/game you can simply draw another “shadow” sprite behind the actual sprite. This involes some calculation where to position the “shadow” sprite and how to scale it.
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