Because developers dont need to conserve storage, they do not need to optimize anything inregard to it, because that is a peasent job, for poor people who cant afford storage, and have a limited amount.
This is, very simplified and insulting, the entire reason.
Because storage does not matter, you can just have a 500 gb game, however, you still not to move it from A to B, with B being your console, and the disc only holding 50 of those gigabytes, so it needs to download the rest, ontop of it, moving 450 gb over the internet is slow, so compressing they compress the files, and the disk files was compressed already, so that 50gb turnss into 100 gb, so only 400 gb needs to be downloaded, and thats compressed to 200 gb, which downloads much faster, but it still has to decompress.
But now the issue is, you have a 500gb game, and nothing on the public markets on an affordable coin, can run all of that at once, so files needs to be placed in logic to the code, so the files know where the chonky textures and and uncompressed 16k raw recording.
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