1.open photoshop
2.make the ONE and ONLY layer transparent like so:
3. fill that layer and make it black or what ever color you want it to fade into. like so:
4.place a mask on the layer:
in this image, select the layer you want to have a mask, then click on the icon that i put a red box around, you'll see a white square appear next to the layer image, the arrow is pointing at it. More specifically, make sure you have the mask selected and the the material in the layer, you'll know if you see the white box outlined with those black corner pieces that the arrow is more closely pointing at.
5. select the gradient tool
6. if the mask is selected the fill and stroke colors should automatically be black and white, if not, make sure you pick black and white. Also in the upper left corner where you see the gradient, make sure you have the black to white selected and radial gradient selected:
7. click and drag from the middle of your black layer and let go and you'll have a transparent circle
8. notice the checkered background there, that means that it's transparent there. you WANT THAT.
9. take the image you made here and import it as a picture to your game. now, if you want the screen (THE TRANSPARENT PART) to be a different color, then in your event commands tint the screen. If you want the picture to fade into something else other than BLACK then refer back to step 3 and instead of filling the background black, fill it whatever other color you want.
10. make sure you save it as a PNG.