Why do video game console discs now require installation, when we could just put them in and play instantly before? Why did PC discs always require installation

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Answer 1

Because the content of modern games exceeds the storage capacity of DVD/CD (Edit: Same thing for Blu-Ray). This is why a lot of games aren’t even offered on disc anymore. The ones that are, only use the disc as a signal to indicate that you have purchased the game – the actual game content must be downloaded from an internet connection.