1) is false
Games like Uncharted show that it is possible to make games with no-in-game loading screens on the PS3 due to streaming assets from both the hard disc and the Blu Ray drive WITHOUT having an install process.
The Blu Ray has two bonuses over DVD-9:
1) the obvious, it's higher capacity
2) it has a FIXED read speed that is higher than the AVERAGE speed of the DVD-9. Because the DVD-9's read speed is variable, depending on where the data is placed, if the disc is packed full of data that needs to be accessed evenly, the drive obviously isn't going to be reading the outer rim of the disc (the fastest read speed) all of the time. If it's an even spread, the DVD-9 is going to variate between fastest and slowest and fall behind the consistent average speed of the Blu Ray drive, which is more than adequate. It's much faster than the slowest read speed of the 360's DVD-9 drive and significantly slower than the fastest read speed.
If you have a packed disc and need to cram a lot of data into each disc, another limitation arises in DVD-9. Essential data that is integral to the game must be placed on EACH and EVERY disc or perhaps just 2 or 3 of them. For example, character models and specific texture/level data. If you have a persistent level map, say, the one in Final Fantasy VII, you need to make the entire world map available on all the discs you are able to free roam. Dialogue is the same, as is any other kind of essential data.
That means that the sub-8 gigabytes available on the DVD-9 is further compromised, spreading it across more and more discs and forcing each disc to be more crammed, forcing the developers to hassle with the logical technique of putting the most desired and most frequently accessed data on the outer rim. Development then necessitates that they place data evenly, giving rise to a non-ideal situation in which Blu Ray's read speed would be superior to the DVD's average.
So, let's say, for sports games and other junky non-story-driven games, DVD-9 is going to be a plus since you're not going to need to cram. But on RPGs and other stuff where you pack a lot of material onto the disc, the Blu Ray is both going to be able to hold something like at least 5-6 times more data per disc on a dual-layer in addition to having a faster average read speed.
That, and, I'm not sure what the hell Naughty Dog did on Uncharted, but assuming anyone can replicate that, game over, gentlemen. PS3 wins this debate.
That said, a lot of developers are really sloppy with loading/installs on the PS3. At least that's what I have to assume, since there is no technical limitation that I can see on PS3.
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