Problem with pixalization when reducing 3d text size

[ExpansiveArt]

Hello everyone,
I am having a problem with the Xara 3D Maker software.

What I'm trying to do
1) Create a 3d text in Xara and transfer the image over to a photoshop document.

What I did
1)Completed the text I wanted -> File -> Export -> PNG -> Highest settings possible
2) (On Photoshop) File -> place -> select PNG file -> Load

The problem I am having
1) The PNG loads fine and looks great
2) Go to resize the the 3D text to a SMALLER size, and almost instantly it becomes extremely pixalized(?). It is no longer smooth, and pixels can be seen around the edges.
3) I know that this can happen when enlarging a picture size, but in this case I am reducing the picture size and it is still doing the same thing.


So, any suggestions? Am I exporting/Importing it wrong? Easier way? Any advice?

Thanks a lot guys, I really appreciate any help:

[gwpriester]

How small are you making the image in Photoshop?

I have no idea why that is happening. Is the image Mode in Photoshop set to RGB? If for some reason it sees the PNG as Indexed color (256 colors vs 16.7 million colors) then it is possible that there could be some image degradation.

Did you select True Color when you exported the image?

Also you have the option on exporting (I think) to increase the image size or resolution. I can think of no reason why a high resolution 24-bit PNG image would pixelate when reduced in Photoshop.