Can the Collada (dae) file format be used for content, or is it strictly for reciprocity between 3D studios, etc? For example, I create a XNA game, could I create a loader and load it in for usage in my game? Would it be wise and legal to do this? Or can I only use it to transfer between Maya and 3D Max?
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Collada is a perfectly acceptable format to use with XNA. Benjamin Nitschke has created an excellent tutorial on loading a Skinned Collada model with all of the necessary loader classes etc. on his website. The source code is at the end of the article along with some other useful links.