This is a resource format (as one could guess from its name) used by Beam Software for various resources in its games. The first time I had to deal with it was when some anonymous contributor contacted me with a REd decoder for videos in Lost Vikings 2. I adapted for FFmpeg
(wow, it’s been fifteen years ago) and added sound support as well.
Recently I decided to revisit it (previously I tried to adapt decoder for 15-bit video but could not make it exactly right for some reason). So I looked at it, it turned out to be exactly the same algorithm but depending on whether palette is present in the frame (yes, 256-colour palette with RGB555 entries) pixel data is read either as byte palette indices or raw 16-bit values. I also looked at The Dame was Loaded game and its FCP format turned out to use exactly the same compression but with a different frame format (16-bit sizes, different audio/palette/video order and so on). And the game audio uses packed 12-bit PCM (two samples without low nibble are stored in three bytes) which is not something you often see.
And with that I’m done with game formats for a long time. Probably I should write a toy encoder or two now.