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Originally Posted by Jeremy Charette
No one has maxed out DVD's capacity on the Xbox 360, and I don't know of any upcoming games that will need more than one DVD disc.
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Actually, BLUE DRAGON (from MS itself) comes on multiple DVDs.
The MS argument is a bit more subtle than "You don't need the space", because realistically, you can use the extra space under *some* conditions. The full Ms position is that blue laser drives are slower than a 12X DVD drive, that with built-in hardware decompression a lot of bulky data can be stored in compressed form, and that the kind of games that might need more than 9GB disks (JRPGs) are highly linear and can be stored on multiple DVDs with no problem. More, if current-gen consoles are as graphically-capable as they're supposed to be, there should be no need for pre-rendered video, which is why the JRPGs need lots of space; they don't do pre-scripted scenes in-engine.
There is every indication that the upcoming likely masterpiece, MASS EFFECT, will make that point with a flourish. Think: GEARS OF WAR graphics for a an 80+ hour Action-RPG built around dozens of explorable planets fitting on a single DVD. That should be the end of that debate.
As for why WMV HD never took off, its pretty clear that it was:
1- ahead of its time
2- too PC-centric
3- too consumer focused
MS was pitching it for digital cinema but Hollywood took issue with the fact that the format didn't provide for DVD-style "extras"; that the file format was stream-based, not frame-based; and that since files were too compact. Hollywood *doesn't* want a format that can be replicated too cheaply. In fact, ideally, they'd want a strictly Read-only media format but they just haven't found one that would fly in the market yet.
With VC-1, MS has taken a different tack, promoting not its higher compression capabilities but rather its superior video quality even compared to higher data-rate codec implementations. Between that and the early availability of professional grade authoring tools (something H.264 may be getting soon but still lacks) they got VC-1 onto both BD and HD-DVD.
In yet another instance of the format war helping MS, the BD camp was forced to adopt VC1 because of its adoption by HD-DVD, which still grates on Sony because, as pointed out; it moots the whole capacity argument. Add-in that VC1 is integral to the MS IPTV effort and there is a lot of momentum building behind it. Biggest lack is they need to get digital camcorder manufacturers to start supporting it.