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Square Enix is currently investigating how to compress the audio and cutscenes found in the PS3 version of Final Fantasy 13 so that it will fit on a reasonable number of DVD's for the 360 version. They also acknowledge that this will add to the delay for release in the west:

http://xbox360.ign.com/articles/890/890349p1.html

 

Does anyone have any suggestions for S-E?

Perhaps they could use MP3s for audio and WMV for the movies?