The conflict is simple yet difficult to imagine.
Basically, the game functions on a tile grid where each tile is a square. However, the images in the game are rendered with an orthographic camera under 45 degree angle.
We use axis X to be horizontal, Y and Z vertical. This means that everything that is in Y or Z is distorted by square root of 2 - a flat plane on the ground will have dimensions X=1, Y=1.41, and look like a perfect square in the game.
Generally speaking, this conflict results in some perspective magic that vast majority of the graphics have to do.
As a quick nightmare fuel: Anything you see rotate (except biters, car, tank, and combat robots), is not actually just rotating in the 3D space of Blender, but some additional tricks and modifications are happening to it, often times different rotations are using a very different 3D model.
However, specifically rails are weird because they have the conflict directly in them.
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