the xbox 360 is falling behind is dvd9. this isnt a fanboy comment so please bear with me for a moment.
with such small amount of space compared to a pc or bluray, you have to compress the images to fit on the disc, and no matter how great the compression is, you will always lose quality on it, take a raw image file compared to a jpeg, raw is a purely uncompressed file with amazing colours and sharpness yet at the same time the picture is anywhere from 30 megs upwards, when you compress it down to jpeg you lose a huge amount of quality yet the file is now at a much more sane 100kb, its the same way with games, textures have to be compressed and lose the valuable quality feel of it
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