I don't know if this is related, but I've always had this issue where strong changes on the normal map do not really render in the game. For example if you bake normals for a model with only one smoothing group, it doesn't look right in the game even though in an outside renderer, it will look fine. In-game it looks more like the smoothed model without normal maps. So I have been using smoothing groups + normal maps. I don't know why this happens, but it seems like it's sort of the same issue...