In the gfx10.c sample program, a value of 0, which is the smallest Z value, is specified for the primitive Z in order to display the small texture rectangle as forward as possible.
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G_RM_AA_ZB_TEX_EDGE is used for the rendering mode. The TEX_EDGE mode is designed for billboard-type texture mapping. To learn details about the settings of this mode, see the definition for G_RM_AA_ZB_TEX_EDGE.