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Reasonable said:

Oh c'mon, stop reaching.  Seriously.  If they're complaining about disk capacity it's not having enough space on BR, that's for sure.  It's entirely unplausible that they're having more trouble with BR capacity to store stuff more than once vs a single DVD.

OT - smells like an excuse for DLC for me, personally.  Why not release if free if its covered by the game's production costs?

If they did cut stuff due to DVD, it is annoying it won't be on the PS3 cut as I'm sure they feel both versions have to be identical, but then for most multiplatform titles the DVD is still used as the default size to aim for with final content levels - a few RPG titles aside.

I don't get why they don't just use more disks, though, with an option to install on the 360 if you want to remove any disk swapping.

Again, sounds to me like they're taking the suspicously easy money route to DLC vs other methods of solving this very solvable issue - if it's even accurate.

Microsoft charges extra royalties for extra discs, see Rage for example and John Carmacks statements relating. They could if they got their panties into a twist refuse to certify the Lost Planet 2 game for the Xbox 360 which would probably mean Capcom loses at least 60% of their sales.