Many earlier video games used color palettes that can change the color of an enemy, background, or etc. I've looked extensively online and couldn't find anything on how one might go about implementing this.
I'm making a 16-bit game using sprites and would like to be able to change the palette of enemies that'll act as variations of the original one (think: Beat 'Em Up games). I already have an idea of how I might do this: I would need separate sprites for each pallete and then simply select which sprite(s) I want to use. However, I feel there's a better way, one that developers back then used to save memory. They might've set the pixels that should be changed and have colors corresponding to each set of pixels, but this is just my speculation.
A good example of what I mean is when 1P and 2P select the same character in a fighting game like Street Fighter: the 2P character looks the same but simply has different colored clothing.
If anyone has any knowledge or experience in this subject, please let me know! Thanks in advance!