The question is answered, right answer was accepted
Why is Unity distorting pixel art?
This is a plane with the light from Wolfenstein 3D for its texture. On the left is the original image, in the middle is how it appears in Unity on a plane with the Unlit/Texture material, on the right are my import settings. The 'Default' settings shown here are applied to every platform. It's just a png file, nothing weird. Why has it come out blurred and distorted like this?
I'm using a MacBook air with macOS Sierra 10.12, if that's relevant.
Answer by Sam_Mtmer_Jimmy_Samtime_Jimboy_Johnny_Christmorts · Oct 26, 2016 at 08:41 AM
Turns out the problem was the 'Non Power of 2' setting, which only appears when the texture type is 'Advanced'. By default it was 'ToNearest', which caused the distortion. 'None' fixes the issue.
Answer by oStaiko · Oct 26, 2016 at 02:14 AM
I'm not sure if this will work at all, but it sounds about right:
Choose "Point" as the filter mode for your textures.
Choose "Advanced" as your "Texture Type" and disable "Generate Mip Maps"
Choose "RGBA 32 bit" as your "Texture Format"
(From https://forum.unity3d.com/threads/pixel-perfect-and-clean-textures.82265/)