I've always used DXTBMP for working with DDS files. Save your PSD file as a BMP and use DXTBMP to convert the BMP to DDS format. It works on Win10. It gives you the option to save your DDS file to different formats (DXT1, DXT2, DXT3, etc) http://dxtbmp.software.informer.com/
It works great! I'm working on the car Highbank is thinking about doing a contest with and it hasn't failed me once, unlike the DDS Converter 2 that I have on my old PC that failed all the time.
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