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"You said, NG2 was held by the DVD size, you've been reasoned against. Waiting for a reply yet."

One of the reasons Itagaki was unhappy with the 360 was the size of data that its disks could hold. He blamed it for not allowing him to put all that he wanted into Dead or Alive 4. I believe he would also say it was one of the things that held back NG II, and it is one of the reasons he left Techno. Those were two early complaints he raised against the 360 in its earliest days. He wanted to make larger more cinematic games and the DVD 9 was going to hold him back.

http://www.eurogamer.net/article.php?article_id=59906