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3 points

More importantly it was limited by physical media back then.

Like, DVD level physical media, there was a hard limit for everyone, so there was a huge focus on optimization to save space

Now that almost all games are downloaded, they can be as huge as they want. So optimizing for file size is often the first place that gets cut. You might not keep a huge game installed, but it’s rare to avoid buying a game due to file size.

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