The Palette contains game object types that you use to create game objects, as shown in the figure below. The Palette contains four categories of objects:
Dragging an item from the Palette to either the Project Lister or the world in the Design View creates a new game object. If you drag an object directly to the Project Lister, the new game object is automatically placed in the world with its pivot point at 0, 0, 0.
Note: XML schemas define the objects that appear in the Palette. Creating XML schemas is an advanced topic intended for programmers, but it can be helpful to understand how the LevelEditor uses XML schemas. For more information about uses for XML schemas, see the ATF Annotation Guide in the ATF Reference (available from https://github.com/SonyWWS/ATF/tree/master/Docs).