Sound File Formats
introduction
In short, use wav or aiff for editing.
Use high-quality mp3 or ogg for quick drafts to be passed to others for reference or for embedding in web pages.
Lots of games will use ogg for small file size and license reasons.
text
thorough explanation of differences: https://riverside.fm/blog/lossless-audio-formats
lossy versus lossless formats for various services and devices: https://www.soundguys.com/is-lossless-audio-worth-it-83392/